Comments on: Homeowners Insurance Renewal…Yuck!

By: Home Owner David

Home Owner David — Fri, 24 Jul 2009 07:09:44 +0000

The same thing has been happening to us. I can’t give you all the details because my wife handles all of that but she told me last week about how it is going up again.

By: JLP

JLP — Mon, 13 Jul 2009 17:17:38 +0000

The other night there was a local newstory about homeowner’s insurance premiums going up in our area. HOWEVER, they said the average increase was 10% – 12%…NOT 20.1%!

By: swm

swm — Mon, 13 Jul 2009 03:13:40 +0000

You can add the Alabama Gulf Coast to the list of highest rates. Our company just dropped our wind and hail coverage, to cover basically only fire now, and still increased our rates to around $2000 for a $200,000 house. We had to find another small company (there are only 2 small companies that I know of who will insure the area) at an additional increase. We have lived in the same area for 9 years, never filed a claim, built a new house in 2007 under new, stricter building codes which were designed with insurance in mind, were told we would be fine since we spent the thousands of extra dollars on hurricane straps, window coverings, and other things stipulated under the new codes, and we were still dropped and rates increased. We also live 30-40 miles from the coast, not in a flood plane. A lot of the money spent included in those figures spent by the insurance companies after hurricanes include figures for flood which is an additional cost. Regular insurance does not cover flooding.

By: Esko Kiuru

Esko Kiuru — Sun, 12 Jul 2009 23:00:37 +0000

JLP,

I’m hearing that the Eastern seaboard and Florida have seen similar increases because of the hurricane threat. Some insurance firms have pulled out of certain markets. However, it’s also reported that insurance companies spread the risk throughout the world, so rates go up somewhat even in low-risk areas when another area gets hammered often, like the Gulf Coast.

By: Jim

Jim — Fri, 10 Jul 2009 23:09:35 +0000

“Why should I pay more just because I live in a certain area even though I have never filed a claim?”

Because the area you live in has higher risk. Or maybe cause your insurance company is gouging you and you haven’t shopped around.

Texas, Florida and Louisiana have the 3 highest rates for insurance.

By: LOL

LOL — Fri, 10 Jul 2009 19:10:45 +0000

JLP: I doubt you can see a tornado from space

http://www.katrina.noaa.gov/satellite/images/katrina-08-29-2005-1715z2.jpg

Tornado damage in Texas is around $0.1 Billion a year or so. Whereas Katrina alone caused $105 Billion in damage (all states). Ike caused about $10 Billion in damage in Texas.

Hope that helps clear up why people in areas affected by hurricanes are going to pay more.

By: Rich

Rich — Fri, 10 Jul 2009 14:06:08 +0000

The funny things is that if a hurricane comes through and destroys everything, the insurance company will file for bankruptcy and you’ll get nothing. Insurance….what a scam!

By: Dedicated

Dedicated — Fri, 10 Jul 2009 13:26:23 +0000

I’m gasping for air, reading your post. I have not received our bill yet this year, but last year I paid $481 – with $300k in coverage and a $500 deductible.

By: jennifer

jennifer — Fri, 10 Jul 2009 13:11:29 +0000

We own a home in Southeastern NC and our homeowner’s insurance increased 50%!!!

By: Don

Don — Fri, 10 Jul 2009 04:28:31 +0000

I live in tornado country, and I would say from the perspective of an insurance company, tornadoes are way less risky than hurricanes. Sure a tornado takes out a few houses and damages some more. When a hurricane hits, lots of places take damage, flood, etc.

It would be the rare tornado that outpaced the (equally rare) hurricane for damage.