Author Topic: Property Taxes & Home Insurance  (Read 1475 times)

GCinOKC

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Property Taxes & Home Insurance
« on: April 28, 2015, 07:39:35 AM »
Just had a quick question for those of you that might be knowledgeable on this. I don't know how many Oklahoman's are on this site, but if any read this please chime in!

I just got my updated escrow info on my house and my homeowner's insurance policy has gone up 65% in just 2 years now. My house is nothing special, cost $188,000 when purchased in spring 2013 in a suburb of OKC (Yukon for those familiar). When purchased, my original policy was $1,320/yr...then in 2014 I was told it increased to $1,737/yr (32%). I asked my agent what that was all about and he claimed it was across the board increases due to the tornadoes in 2013. I let it go and decided I'd wait and see how it went next year. Well here we are and another $400+ increase to $2,170/yr for 2015 (25% increase from 2014). Now it just seems to be getting ridiculous. I've contacted my agent again and let him know I'm seeking out other quotes as I've talked to a few people in my area that haven't experienced such high increases without a single claim since purchasing the home. What do you all think??

Also, property taxes seem higher than expected for an OKC suburb...2014 taxes were $2,342 and 2015 is $2,404. Does that seem high to anyone else for a home worth around $200k?

EDIT: He said if I up my deductible to $2,500 it would drop to $2,011 or with $5,000 deductible it would be $1,685. So with a $5,000 deductible it would only drop it back to about where it was for 2014...ha!

Thanks!
« Last Edit: April 28, 2015, 08:01:28 AM by GCinOKC »

GCinOKC

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Re: Property Taxes & Home Insurance
« Reply #1 on: April 28, 2015, 07:44:05 AM »
Oh and his only response when I asked about it this time was "I wish I had a better explanation for you other than that the company had to raise rates to stay profitable. I understand you needing to shop around. If there is anything I can do let me know." They really must be either raking in money and not give a shit, or the storms we experience every year have them truly needing to raise rates...?

Axecleaver

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Re: Property Taxes & Home Insurance
« Reply #2 on: April 29, 2015, 10:02:19 AM »
This is a pretty typical scenario for insurance - you really need to shop around every year. Try some of the big homeowner insurance companies like Travelers, if you belong to a big employer or union they sometimes have marketing deals that can get you good rates. The insurance company will often raise rates 25-30% after one year hoping that people won't pay attention.

Same kind of thing happens with car insurance, but that's typically in the 10-15% range.

PS: Your agent sounds like a crook, find another agent and get a quote but never tell them what you're already paying. Just tell them you're getting three quotes and you want to make a decision within two weeks.

PPS: I'd kill for property taxes as low as yours! Many districts give out so many exemptions (seniors, farmers, veterans, schoolteachers, policemen, etc) that the taxes get concentrated on a very small number of taxpayers, and if you're the lucky guy with no exemptions, you could be shouldering 10x the rates of your neighbors. Make sure you're taking advantage of every exemption available.
« Last Edit: April 29, 2015, 10:46:30 AM by Axecleaver »

NCGal

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Re: Property Taxes & Home Insurance
« Reply #3 on: April 29, 2015, 10:15:58 AM »
Your agent sounds like he doesn't want to work to earn your business. I would get other quotes and try to compare apples to apples.
However there may be truth in what he said is happening in the state due to the 2013 tornadoes. You should be able to get specifics from your State Insurance Board. They regulate the percentage increases allowed by county. At least that's what happens in North Carolina. And many counties have received huge increases - to cover storm and hail damage in other counties. The model sucks. And there's also a lot of fraud.