Why is our homeowner's insurance going up so fast?

[sheepstache]

We have home owner's insurance for our co-op apartment through State Farm. Our insurance last year was $253. This year it's $292. We vaguely remember the year before it was $225. Since last year, it increased the value of our building by $400 and our personal property by $800. The total personal property covered is around $42,000 now. While what we, like most people own, is depreciating assets, I guess they assume you're continually purchasing more stuff.
It has the same amount of liability coverage (which is what we're most concerned about) and deductibles as before.

So far we've looked at Geico, Farmer's and Liberty Mutual and they're all higher.

My question is, what gives? Why is it going up so fast? Is it going up fast? Might it have to do with crime rates? Is there any way to bargain State Farm down without a lower competing offer?

[BooksAreNerdy]

Try someone local. GEICO owns liberty mutual and travelers.

The agent I spoke with recently told me that rates are increasing across the board. Ours went from $900 to $980 this year.

[jms493]

I was just looking at this as well yesterday.  My travelers is increasing as well.  The keep increasing the assessed value of my home.

[thedayisbrave]

I'm in agreement... this is something I've been dealing with recently given some new home purchases.  I got a policy on a new property yesterday for $428 - condo/walls in policy.  He asked about personal belongings... I valued my things at $2500... mostly thrift store/department store clothes, furniture that I paid about $1750 for total.  Of course the minimum was $15,000 apparently so I had to go with that.  #mustachianproblems

Last year I paid $531 for a town home policy (covering the exterior building as well).  But in 2012 for another condo policy I paid $212... I was digging through past records so it was for "renewal" so I don't know if that made a difference but between that policy and the one I just got yesterday, it's pretty much the exact same policy.

[meyla]

I don't have any answers, but I'm also experiencing this. My insurance for last year was $1k, and this year I received renewal paperwork at $1200. I've shopped around as much as I can and found that Amica allows much more flexibility in policies, so I'll probably be switching to them for $850. I still don't like that price, but it's better than the annual 20% increase.

[frugalnacho]

Our homeowner's insurance shot up about 70% last year for both our houses.  We switched companies, but our new rates were still slightly up.

[NCGal]

It could have to do with what state you are in and what kind of increases the insurance board is allowing/approving.

Over the last few years our homeowner's insurance has been inching up. The last increase was around 15%. I use a broker who obtains a policy through Erie Insurance. He prices out other companies and sends me the quotes. I also take those quotes and do my own comparisons and Erie still comes out cheaper. I hear they are good on claims - luckily we haven't needed one.

In NC several things are affecting premiums. Coastal storms over the last few years have driven prices up, and the costs are spread out over the state, even to the areas that have not been hit by bad weather.  Claims for roofing problems due to hail damage have skyrocketed. Some of the claims are real but many are trumped up. I think the HOAs are in cahoots with the roofers. Ours was publicizing a roofing company that was doing free assessments for hail damage from a storm that occurred 3 years ago. They sent out notices and my neighbors and I were like 'what hailstorm?'.  I'm sure this free assessment led to many unnecessary claims and I would not be surprised if there were kickbacks to the HOA. Just lovely. 

[Shor]

Solution: Set up an insurance company and cut below the market. You don't carry the costs of bigger companies as you weren't around for those disasters.
Get all the business, fund new insurance claims with your new-found cashflow.
When the next disaster hits you either:
A. Suck it up, and pay up
B. Raise rates, and never sleep at night again!
or C. File Bankruptcy; State takes over, covers claims, and pulls it out of people's taxes over the next 30 years.

I'm kidding... maybe...

[merula]

Find an independent insurance agent. They'll do the shopping around for you and find a cheaper price to win your business. Also, to OP and anyone else who has the issue where the carrier is bumping up your limit, you can bring it back down to save money.

Try someone local. GEICO owns liberty mutual and travelers.

The agent I spoke with recently told me that rates are increasing across the board. Ours went from $900 to $980 this year.

Geico doesn't own anyone. Liberty Mutual and Travelers are independent companies, Geico is owned by Berkshire Hathaway.

[sheepstache]

Interesting about the industry stuff that's been going on. And, yes, now that you mention it, I bet the damage from hurricane Sandy is having an effect, even though our immediate neighborhood was fine.

[JLee]

Try someone local. GEICO owns liberty mutual and travelers.

The agent I spoke with recently told me that rates are increasing across the board. Ours went from $900 to $980 this year.

Yeah, I heard that last year too when I went from ~$750 to $880.

[burly]

I had this issue around this time of year but last year... I received my H/O renewal and thought it seemed high... I called in and asked and they gave me some standard excuse about number of claims in the area etc... Hung up and called back a few days later to see if I could get a discount.  This rep told me that since my home was built in the 50's that the prices are going up on all homes built before 1970... I went from paying $850 (2013's amount was $787) ASI (Geico's PA Affiliate) to Allstate's $450.

So, essentially what I'm saying is shop around... Some companies only like certain styles of homes and so forth.