Author Topic: Homeowner's insurance went up more than 50%!?!?  (Read 4450 times)

GuinnessPhish

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Homeowner's insurance went up more than 50%!?!?
« on: June 19, 2014, 01:37:02 PM »
Just got my homeowner's insurance policy renewal information today.

We paid $526 last year, and this year it's up to $819!!  An increase of 56%!


They raised the dwelling limit (reconstruction cost) to $417,000 from $397,000 it was last year, claiming cost of reconstruction materials and labor has increased.  While I understand that these costs do rise from year to year, the increase of $293 for the premium seems like quite a lot.


This is through Homesite insurance through Progressive, and I have auto insurance bundled with it (not included in the numbers in this post).

Is this a typical insurance procedure?  Low ball you on the first year's rate, and then stick it to you in year 2?

Anyone have recommendations for insurance companies?  Looks like I'll be shopping around for rates to see if I can do any better.....

TLV

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Re: Homeowner's insurance went up more than 50%!?!?
« Reply #1 on: June 19, 2014, 01:43:47 PM »
When we had Progressive for auto/renter insurance, they similarly raised the rate by a significant amount after the first bit (I can't remember if it was 6 months or a year). When I inquired, I was told that the initial rate had an "internet-signup" promotional discount, which had NOT been disclosed up front.

I don't know if it's "typical" to bait-and-switch, but it certainly happens. We've had insurance through Geico since then and haven't had any unpleasant surprises (one pleasant surprise though - we got a discount for subscribing to National Geographic that is greater than the cost of the subscription).

A_P_

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Re: Homeowner's insurance went up more than 50%!?!?
« Reply #2 on: June 19, 2014, 01:50:22 PM »
I had a similar experience with my home insurance, through Farmers.

My recommendation, find a local independent insurance agent to work with. They can compare many different companies for you to get the best rate. I was able to save about 33% annually. The best part is, if the company they initially sign you up with raises rates significantly, my agent will automatically compare to see if I can save money by switching. That way, I can always get the best deal possible, but I don't have to change agents.

arebelspy

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Re: Homeowner's insurance went up more than 50%!?!?
« Reply #3 on: June 19, 2014, 02:04:18 PM »
I just shop around if they do that.  You'll find one that doesn't after a bit.

I used to use Progressive, but they kept raising it bit by bit on me (no huge jumps).

I'm with Century National currently for about half of my rentals, Affinity for the other half, and Traveler's for my auto/primary residence.
« Last Edit: June 19, 2014, 02:14:15 PM by arebelspy »
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slugline

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Re: Homeowner's insurance went up more than 50%!?!?
« Reply #4 on: June 19, 2014, 02:14:42 PM »
Time to shop around. Progressive was good to me as a car-owning renter, but when I became a homeowner their cheaper auto insurance was drowned by the quote they gave me on insuring the house.

frugaliknowit

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Re: Homeowner's insurance went up more than 50%!?!?
« Reply #5 on: June 19, 2014, 02:20:01 PM »
If you happen to be 50 or over (49 might qualify), definitively call AARP (you don't have to join before getting a quote and you don't have to renew your membership to continue a policy).

frugalnacho

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Re: Homeowner's insurance went up more than 50%!?!?
« Reply #6 on: June 19, 2014, 02:25:25 PM »
I had a similar experience with my home insurance, through Farmers.

My recommendation, find a local independent insurance agent to work with. They can compare many different companies for you to get the best rate. I was able to save about 33% annually. The best part is, if the company they initially sign you up with raises rates significantly, my agent will automatically compare to see if I can save money by switching. That way, I can always get the best deal possible, but I don't have to change agents.

Farmers did the same to me, except it was about a 70% price increase for no apparent reason.  That shit got canceled as soon as I found a replacement.

lackofstache

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Re: Homeowner's insurance went up more than 50%!?!?
« Reply #7 on: June 19, 2014, 02:44:25 PM »
It may be coincidence that it's your first renewal, many insurance companies are raising rates/changing deductibles. We had a rate increase & jumped ship. Insurance companies like different people, so a company that is cheap for me may be expensive for you, so I'd shop it. Try Geico, State Farm, Farmers, etc. They all come out on top for different folks.

neo von retorch

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Re: Homeowner's insurance went up more than 50%!?!?
« Reply #8 on: June 19, 2014, 04:59:52 PM »
My lowest was $285 with Donegal, and my highest was $706 with State Farm. Since it was creeping up on State Farm, I got another Donegal Quote, and it's back down to $311... saving almost $400 / year!

okashira

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Re: Homeowner's insurance went up more than 50%!?!?
« Reply #9 on: June 20, 2014, 05:59:18 PM »
WTF.

You people pay 1/2 and less of what I pay ($1400/yr) on a house who's value could practically fund my retirement.
Bought my home for $120,000. And that's with 3% deductibles.
Fucking Houston area...

Zamboni

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Re: Homeowner's insurance went up more than 50%!?!?
« Reply #10 on: June 20, 2014, 06:10:20 PM »
Mine had a similar jump in rate this year.  The agent on the phone said it was because of "increased claims in my local area."  It's not like I live where there has been any sort of natural disaster or bad weather, so WTF?  Sounds like corporate BS to me.  I increased the deductible to get it back down to normal, but thank you for reminding me to shop around.  Since I've never made a claim, such a big jump ticks me off.