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???

[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.

[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.

[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