Comments on: My Homeowners Insurance Renewal: OUCH! http://allfinancialmatters.com/2007/08/02/my-homowners-insurance-renewal-ouch/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Fri, 20 Nov 2009 19:56:44 -0800 http://wordpress.org/?v=abc hourly 1 By: Ian Roger http://allfinancialmatters.com/2007/08/02/my-homowners-insurance-renewal-ouch/comment-page-1/#comment-418073 Ian Roger Fri, 01 May 2009 10:27:11 +0000 http://allfinancialmatters.com/?p=1924#comment-418073 This is a wonderful opinion. The things mentioned are unanimous and needs to be appreciated by everyone. Ian Roger <a href="http://www.homeinsurance247.net" rel="nofollow">Home Insurance</a> This is a wonderful opinion. The things mentioned are unanimous and needs to be appreciated by everyone.
Ian Roger
Home Insurance

]]> By: Cathy http://allfinancialmatters.com/2007/08/02/my-homowners-insurance-renewal-ouch/comment-page-1/#comment-410346 Cathy Tue, 24 Mar 2009 15:06:56 +0000 http://allfinancialmatters.com/?p=1924#comment-410346 My homeowner's cost has gone up every year since I moved into it in 1999 ($495). Last year it was $707.00 and now it is $864.00 for my 2009 premium. I was told by High Point (my insurance carrier) I have the Premier Inflation Protection Plan which is the best. I really don't understand it. I was told with the cost increase of building supplies, my house would be re-built without a problem of inflation rates. But with this economy.... didn't building supplies go down? My homeowner’s cost has gone up every year since I moved into it in 1999 ($495). Last year it was $707.00 and now it is $864.00 for my 2009 premium. I was told by High Point (my insurance carrier) I have the Premier Inflation Protection Plan which is the best. I really don’t understand it. I was told with the cost increase of building supplies, my house would be re-built without a problem of inflation rates. But with this economy…. didn’t building supplies go down?

]]> By: Ed http://allfinancialmatters.com/2007/08/02/my-homowners-insurance-renewal-ouch/comment-page-1/#comment-210399 Ed Mon, 14 Jan 2008 02:31:51 +0000 http://allfinancialmatters.com/?p=1924#comment-210399 My homeowner's cost was never more than $600 per year, but I consider that to be excessive. I've been in my house 20 years (paid off) and have had only 2 small claims. I cut it back considerably, to $350, in effect self-insuring. If my house is destroyed, I have to pay a significant portion. However, considering how small that possibility is, I'm willing to live with it. I live in an area with tornados and have had 2 major ones in my vicinity in the last 50 years. I'd be happy to collect all the premiums from my neighbors and insure them. My homeowner’s cost was never more than $600 per year, but I consider that to be excessive. I’ve been in my house 20 years (paid off) and have had only 2 small claims. I cut it back considerably, to $350, in effect self-insuring. If my house is destroyed, I have to pay a significant portion. However, considering how small that possibility is, I’m willing to live with it. I live in an area with tornados and have had 2 major ones in my vicinity in the last 50 years. I’d be happy to collect all the premiums from my neighbors and insure them.

]]> By: Jerry http://allfinancialmatters.com/2007/08/02/my-homowners-insurance-renewal-ouch/comment-page-1/#comment-208127 Jerry Fri, 11 Jan 2008 03:34:40 +0000 http://allfinancialmatters.com/?p=1924#comment-208127 That sucks! I'm sorry to hear about it. You might want to shop around. I was just curious about our homeowners insurance policy and called around and found a better price. It wasn't a HUGE savings but enough that I made the switch. Good luck! I hope it helps and leads to a better premium next year:) Jerry www.leads4insurance.com That sucks! I’m sorry to hear about it. You might want to shop around. I was just curious about our homeowners insurance policy and called around and found a better price. It wasn’t a HUGE savings but enough that I made the switch. Good luck! I hope it helps and leads to a better premium next year:)

Jerry
http://www.leads4insurance.com

]]> By: Ernesto http://allfinancialmatters.com/2007/08/02/my-homowners-insurance-renewal-ouch/comment-page-1/#comment-184086 Ernesto Tue, 04 Dec 2007 16:01:13 +0000 http://allfinancialmatters.com/?p=1924#comment-184086 Your premium is pretty steep; I'm guessing you live in Florida or somewhere near the ocean. Considering a hurricane wipes out nearly every coastal city about once every 40 years, your rates are understandable. Back in the day, insurers helped pass the cost along to those of us nowhere near the ocean. I remember Nationwide hiking my homeowners premium after hurricane Andrew. When I called my agent, he explained it was all the wind claims in Florida. When I pointed out I live in Ohio, he didn’t have a good answer. Soon after, I switched to a mid-west based insurer with no coastal exposure (and saved a ton). I'm a bit worried reading comments about people disputing their replacement costs. I could fill a bucket with what most people don't know about rebuilding a house. You’ll feel stupid saving money on premium when your house is not properly rebuilt after a major claim. If you think your insurance company is full of beans (and it's worth $7.95) check out http://www.accucoverage.com/ (I'm not affiliated with this site) they'll generate a replacement cost for your house. Your premium is pretty steep; I’m guessing you live in Florida or somewhere near the ocean. Considering a hurricane wipes out nearly every coastal city about once every 40 years, your rates are understandable.
Back in the day, insurers helped pass the cost along to those of us nowhere near the ocean. I remember Nationwide hiking my homeowners premium after hurricane Andrew. When I called my agent, he explained it was all the wind claims in Florida. When I pointed out I live in Ohio, he didn’t have a good answer. Soon after, I switched to a mid-west based insurer with no coastal exposure (and saved a ton).
I’m a bit worried reading comments about people disputing their replacement costs. I could fill a bucket with what most people don’t know about rebuilding a house. You’ll feel stupid saving money on premium when your house is not properly rebuilt after a major claim.
If you think your insurance company is full of beans (and it’s worth $7.95) check out http://www.accucoverage.com/ (I’m not affiliated with this site) they’ll generate a replacement cost for your house.

]]> By: Foxfollower http://allfinancialmatters.com/2007/08/02/my-homowners-insurance-renewal-ouch/comment-page-1/#comment-137405 Foxfollower Thu, 06 Sep 2007 18:51:47 +0000 http://allfinancialmatters.com/?p=1924#comment-137405 This is an annual "kriptonite" zap,isn't it. Along the Southcoast Massachusetts it's radical right now. I have flood insurance that I carried over from a beachshack (read: mangeled heap of stucco)in Wareham at Swifts Beach to a farmhouse/colonial a 3/4 of a mile inland because I was grandfathered before everyone cut us off! 'm paranoid now and won't be able to get it again, so I keep writing the checks! Look at this - this is some of what's going on around southeastern massachusetts! http://www.southcoasttoday.com/apps/pbcs.dll/article?AID=/20070906/NEWS/709060360 Foxfollower - Wareham, MA This is an annual “kriptonite” zap,isn’t it. Along the Southcoast Massachusetts it’s radical right now. I have flood insurance that I carried over from a beachshack (read: mangeled heap of stucco)in Wareham at Swifts Beach to a farmhouse/colonial a 3/4 of a mile inland because I was grandfathered before everyone cut us off! ‘m paranoid now and won’t be able to get it again, so I keep writing the checks! Look at this – this is some of what’s going on around southeastern massachusetts!

http://www.southcoasttoday.com/apps/pbcs.dll/article?AID=/20070906/NEWS/709060360

Foxfollower – Wareham, MA

]]> By: Alex http://allfinancialmatters.com/2007/08/02/my-homowners-insurance-renewal-ouch/comment-page-1/#comment-128632 Alex Sat, 11 Aug 2007 17:11:53 +0000 http://allfinancialmatters.com/?p=1924#comment-128632 Ouch is right. That premium does seem high, but as you point out, you're being punished simply for living in an area where there's a heavy claims history. This can be a problem here in the UK too. We've had dreadful flooding across England this summer and many people are finding their renewal premium has rocketed as a result. Perhaps we should all be looking for new careers in the insurance industry? Ouch is right. That premium does seem high, but as you point out, you’re being punished simply for living in an area where there’s a heavy claims history. This can be a problem here in the UK too. We’ve had dreadful flooding across England this summer and many people are finding their renewal premium has rocketed as a result. Perhaps we should all be looking for new careers in the insurance industry?

]]> By: SavingWithMe.com http://allfinancialmatters.com/2007/08/02/my-homowners-insurance-renewal-ouch/comment-page-1/#comment-127335 SavingWithMe.com Tue, 07 Aug 2007 19:51:02 +0000 http://allfinancialmatters.com/?p=1924#comment-127335 Unbelievable. I work with quite a few guys that live on the coast and commute and an hour inland to our work. Their insurance rates are two to three times the cost of mine, living just an hour inland. The increases have become out of control and it does not seem like the government in my state, Florida, is able to do much about it. Unbelievable. I work with quite a few guys that live on the coast and commute and an hour inland to our work. Their insurance rates are two to three times the cost of mine, living just an hour inland. The increases have become out of control and it does not seem like the government in my state, Florida, is able to do much about it.

]]> By: Frank http://allfinancialmatters.com/2007/08/02/my-homowners-insurance-renewal-ouch/comment-page-1/#comment-126762 Frank Sun, 05 Aug 2007 18:50:04 +0000 http://allfinancialmatters.com/?p=1924#comment-126762 insurance companies are not your friends see bloomberg article http://www.bloomberg.com/apps/news?pid=20601170&refer=home&sid=aIOpZROwhvNI insurance companies are not your friends see bloomberg article http://www.bloomberg.com/apps/news?pid=20601170&refer=home&sid=aIOpZROwhvNI

]]> By: Doug http://allfinancialmatters.com/2007/08/02/my-homowners-insurance-renewal-ouch/comment-page-1/#comment-125930 Doug Fri, 03 Aug 2007 11:40:50 +0000 http://allfinancialmatters.com/?p=1924#comment-125930 ..well, all buyers want low prices -- and all sellers want high prices. How much 'should' your property insurance cost 'now' ? You can't objectively calculate that ... you can only assess the market price. No commercial company owes you insurance coverage -- it's a 2 way street. If selling insurance coverage becomes unprofitable... nobody will sell insurance at all. Of course, insurance is one of the most heavily government-regulated businesses in America. The unpredictable heavy-hand of politicians thus adds a lot of risk to insurance sellers; it also tends to keep out new insurance companies who would compete with lower rates. There really is no fair 'market' price for insurance due to outrageous political interference in that business. Shop around to the extent you can... and get the highest deductibles you can afford. I would view homeowner's insurance as 'catastrophic' coverage only -- take care of the small stuff yourself. ..well, all buyers want low prices — and all sellers want high prices.

How much ’should’ your property insurance cost ‘now’ ?

You can’t objectively calculate that … you can only assess the market price.

No commercial company owes you insurance coverage — it’s a 2 way street. If selling insurance coverage becomes unprofitable… nobody will sell insurance at all.

Of course, insurance is one of the most heavily government-regulated businesses in America. The unpredictable heavy-hand of politicians thus adds a lot of risk to insurance sellers; it also tends to keep out new insurance companies who would compete with lower rates. There really is no fair ‘market’ price for insurance due to outrageous political interference in that business.

Shop around to the extent you can… and get the highest deductibles you can afford. I would view homeowner’s insurance as ‘catastrophic’ coverage only — take care of the small stuff yourself.

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