Homeowners insurance going crazy!!!

[bellavite1]

I just checked my homeowners policy renewal and it went up from $2450.86 to $3193.36!
An increase of $742.50 from last year...on a 702 sq/ft home with a backyard.
That can't be right!
I am with Farmers.
The house is in Wheatridge, pretty rundown frankly, but estimated value is around $430k, according to Zillow and Realtor.com.
Is anyone else seeing this kind of increases??? [panic]

[Circuits]

I've just about doubled in the past two years $2100 something up from $1200ish in 2020. 2100sqft with moderate lot in COS. $415k per zillow.

[encorehunter]

Ours had about the same increase, around 2400 to 3200. We are with USAA, but we filed a claim within weeks of renewing.

[00tec]

Not sure exactly what we pay now, but priced ins for the new house. ~$650 per year or so

[eddiememphis]

I have some practical knowledge on insurance, having been a licensed agent for several years.

Insurance is pooled risk. We toss money into a pot and when someone needs it, they get it.

Your rates went up, not because your risk went up, but because the pot was running low, likely due to replacement cost. (Generally speaking, there are a lot of factors that go into it - that is why an insurance actuary makes a lot of money.)

My brother in law is an insurance agent.

He was with Farmers for several years. In 2008, he opened his own agency. He recruited me to help him get all the systems figured out.

Here is what I learned...

There are two types of agents. Independent and captive. A captive agent can only sell his company's insurance. Farmers, Allstate and several others.

An independent agent contracts with many more carriers. At least a dozen, Hartford, Safeco and most of your auto carriers like Progressive.

The advantage of an independent agent is he can shop your needs before renewal. A month or so before your current coverage expires, they send your info to all their carriers. It takes seconds to get the results. If you can save money by changing companies, great. If not, we will try again next year.

Home renews annually, cars usually 6 months, although you can buy annual terms as well.

Bundling home and auto usually saves you money, but not always- it depends on the carrier.

There is no reward for loyalty. Agents have very little influence on claims. Changing companies doesn't affect rates, unless you are buying shitty insurance with minimum coverage and have a lot of claims and DUIs and whatnot.

Find an independent agent that will shop you every year. It really does make a difference.

If you, or anyone, wants to talk to him, let me know.

[whitewalrus]

I had a large jump in mine as well. Just assumed it was due to the increased housing costs as well as replacement costs.


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[beast556]

Ours is set to renew next month, it is going up 600$ this time and 500$ last renewal.

[Wolfshoon]

went from $1480 to $4300 in less than 3 years for same coverage, but ot be fair I've cost this ins co more than $211k over 12 years with 3 hail storms. Had to switch home ins this year though, saved over $2300 doing so.

[Hummer]

We recently got a quote from our current insurer of $7500 per year for full rebuild on a $350K mountain cabin. What's the risk factor

[Little Dutch]

I have some practical knowledge on insurance, having been a licensed agent for several years.

Insurance is pooled risk. We toss money into a pot and when someone needs it, they get it.

Your rates went up, not because your risk went up, but because the pot was running low, likely due to replacement cost. (Generally speaking, there are a lot of factors that go into it - that is why an insurance actuary makes a lot of money.)

My brother in law is an insurance agent.

He was with Farmers for several years. In 2008, he opened his own agency. He recruited me to help him get all the systems figured out.

Here is what I learned...

There are two types of agents. Independent and captive. A captive agent can only sell his company's insurance. Farmers, Allstate and several others.

An independent agent contracts with many more carriers. At least a dozen, Hartford, Safeco and most of your auto carriers like Progressive.

The advantage of an independent agent is he can shop your needs before renewal. A month or so before your current coverage expires, they send your info to all their carriers. It takes seconds to get the results. If you can save money by changing companies, great. If not, we will try again next year.

Home renews annually, cars usually 6 months, although you can buy annual terms as well.

Bundling home and auto usually saves you money, but not always- it depends on the carrier.

There is no reward for loyalty. Agents have very little influence on claims. Changing companies doesn't affect rates, unless you are buying shitty insurance with minimum coverage and have a lot of claims and DUIs and whatnot.

Find an independent agent that will shop you every year. It really does make a difference.

If you, or anyone, wants to talk to him, let me know.

My insurance dropped over a grand a year when I swapped to an independent. I'm currently with SafeCo. The renewal happened recently, they were best price for both houses and the vehicles.

[BladesNBarrels]

Did a total review of all insurance policies and coverage last year with a change of agents.
Everyone has different needs and situations.
Some of the home insurance clauses and riders are pretty cheap for what you get.
We added service line coverage, more of a home warranty rider, and it is not in the home owners policy, for the cost of a case of beer.
Our 18-year old house developed a water line leak between the meter and the foundation, about 45 feet.
Only noticed due to a small drip behind the storage shelves in the basement.
Yep, called a plumbing service, and the meter was ticking off about 1000 gallons a day, where our normal usage is 300-400 per day in the summer!
Crew of 4, Backhoe, Dump Truck, Two excavation pits near the meter and at the corner of the house, pulling pipe through the foundation to the meter, for a 14-hour day.
About $14,000 literally down the drain.
The service line policy had a limit that covered about 70 percent of the cost, but we are sure glad we added it.
I know this is just an anecdote, but it does remind me why we have insurance.

[arbol]

Every insurance is going crazy.

It's in law that you must have insurance.

Really?

I MUST have insurance?

Obviously, the costs of insurance are skyrocketing.

[zteknik]

Every insurance is going crazy.

It's in law that you must have insurance.

Really?

I MUST have insurance?

Obviously, the costs of insurance are skyrocketing.

And the bank accounts of the politicians who make you get it is skyrocketing as well..

[tactical_2012]

Every insurance is going crazy.

It's in law that you must have insurance.

Really?

I MUST have insurance?

Obviously, the costs of insurance are skyrocketing.

There is no law you must have Inusrance if you own your house your Mortgage company makes you have insurance as part of the loan agreement

[BladesNBarrels]

Some insurance coverage is required by profession and by regulation
Errors and Omissions Insurance and/or Malpractice Insurance for professionals
Auto Insurance for Registered Vehicles and Drivers
Just examples

[earplug]

Replacement costs have skyrocketed. Why insurance is more.

[Wulf202]

Replacement costs have skyrocketed. Why insurance is more.

That's not quite how it works.

Insurance agents can influence the speed at which a claim gets addressed in all the carriers I've worked for. Which is about a dozen now.

Safeco is not an insurance company I would want to have on my home.

[MarkCO]

For the OP, that is WAY too high. I switched from Farmers to AAA a few years ago. My insurance went down. I am probably paying about half your rate. Car insurance went up a little this cycle, as did the Umbrella.

Yes, cost of replacement is higher, and that is some of the pressure. BUT, the Marshall fire, general crime in CO and inflation are all part of parcel of the increases in 2022.

[AR_ART]

Call them and see what they can do. My home owners policy was included as part of my mortgage payment and didn't really pay attention. When I paid off the house and had to pay the Insurance myself, I though the amount was insane! I checked around and found policies that cost less. When I called them they did a recheck and they dropped my rate in half. They said under some weird Co law or something they can raise your raise a certain amount and it's up to you to check if it's in line with what others charge. Weird. And this is Liberty Mutual not some unknown company. So call them and check!

[bellavite1]

I hear you guys but unfortunately my roof is made of t-lock shingles.
Farmers grandfathered It, but i'm getting pushback from other companies just at the mentipn of it...
Anyone knows of some other insurance company willing to work wirh t-lock shingles?
I might be stuck with Farmers...

[battlemidget]

Worst products in the world have the best advertising.

[battlemidget]

I hear you guys but unfortunately my roof is made of t-lock shingles.
Farmers grandfathered It, but i'm getting pushback from other companies just at the mentipn of it...
Anyone knows of some other insurance company willing to work wirh t-lock shingles?
I might be stuck with Farmers...

Call real estate agents, they broadly know who's writing what.

[BladesNBarrels]

... this is Liberty Mutual not some unknown company....

Bad taste in my mouth from Liberty Mutual
Converted my GI Insurance to what I was told was Whole Life with them in 1970
Put my car on their insurance coverage at the same time
1 year later they tripled the premium on the car - called and got the explanation that the company was getting rid of all drivers under 26 years old.
Cancelled the car insurance and went elsewhere - tried to carry the Whole Life Insurance over to the new company, and discovered they had converted it to Term Life and it had expired.
Blah!

[Wulf202]

I hear you guys but unfortunately my roof is made of t-lock shingles.
Farmers grandfathered It, but i'm getting pushback from other companies just at the mentipn of it...
Anyone knows of some other insurance company willing to work wirh t-lock shingles?
I might be stuck with Farmers...

Most insurance companies will do t locks at acv only. Which means you'll get 20-25% replacement cost. 1 damaged t lock will total the roof so if there is any wind damage or any hail damage your roof is done. It might be worth having an inspection to see if theres any damage.

[Wulf202]

Bad taste in my mouth from Liberty Mutual
Converted my GI Insurance to what I was told was Whole Life with them in 1970
Put my car on their insurance coverage at the same time
1 year later they tripled the premium on the car - called and got the explanation that the company was getting rid of all drivers under 26 years old.
Cancelled the car insurance and went elsewhere - tried to carry the Whole Life Insurance over to the new company, and discovered they had converted it to Term Life and it had expired.
Blah!I have worse stories from working with them. LM/safeco is cheap for a reason.

[BushMasterBoy]

If anything happens to my house, I'll just go stay in a Trump Hotel.

[newracer]

Mine also went up a lot due to a reevaluation of replacement cost that I requested. Still not nearly as bad as a lot of you. $2,379 annually for a 2600 sf house with a 1800 sf unfinished basement valued ~$700K.

[earplug]

Take a look at Shelter. They have treated us fair.

[00tec]

Safeco covered my RZR until a few days ago. Guess it panned out I never had to use them