Admitedly I live in a state whose leaders never seem to see a regulation that they don't like (California), but I find myself thinking of modern construction as a rich-mans game. I just did the HVAC on a home that came in at $500/square foot. And we aren't talking luxury either. It's small, urban and had to deal with such things as our local electrical utility charging $40K to upgrade the electrical capacity and underground it. That stuff adds up fast. Add in the fact that we are in a high-risk zone for both fire and earthquakes and the insurance companies are in a jam.
- Higher construction costs (repair costs)
- Stricter construction regulations (repair costs)
- Higher density of housing (more damage from localized natural events)
- More housing in semi-remote mountain areas (fires)
- Lots of claims (harder to dilute the risk)
Some of this is similar to the car insurance situation. Cars are way more difficult and expensive to repair now, so insurance cost must go up.
I called and no dice. They said to try a local biz. We'll see.
I skip around with car insurance because $1k for six months is more than I can stomach on a couple older cars with clean record drivers. I've been able to keep it beneath that cutoff but just barely
Switch to a broker.
For one, I have too many insurance products to handle myself (between home, vehicles, tools, inland marine, business(es), bonds, etc.). For another, you might find that the same coverage purchased through a broker is actually cheaper: They often have access to pricing that's not available to the public.
Switching to a broker was a fantastic decision for me, and it also means that I can call one person if I have questions or needs on any of my policies and they handle it for me.
$1k for six months? I'd kill for that low a rate.
brandonsmash said:
Switch to a broker.
For one, I have too many insurance products to handle myself (between home, vehicles, tools, inland marine, business(es), bonds, etc.). For another, you might find that the same coverage purchased through a broker is actually cheaper: They often have access to pricing that's not available to the public.
Switching to a broker was a fantastic decision for me, and it also means that I can call one person if I have questions or needs on any of my policies and they handle it for me.
100%. Brokers work for you, not the insurance company. They also have access to companies that don't pay for Superbowl ads.
Driven5
PowerDork
10/8/24 4:13 p.m.
My concern with playing the annual insurance company roulette with a broker has always been, how do you ensure they're reasonable when you actually have to file a claim? Saving a few bucks on the front end isn't worth it if I'm going to get screwed that much harder on the back end.
!!!!! My dad got dumped by his old provider. He's got 10 acres in California (Fire country) with a nice house and a big barn/shop with a rental in it. After much searching, his new policy is $28,000/yr, plus an additional policy to cover his vintage motorcycle collection! This changes everything for my sister who's slated to inherit the spread, because she may not be able to afford to live there with taxes and everything else. Motherberkeleyer!
In reply to Driven5 :
I would investigate the companies that the broker recommended...how long have they been in business, do they have a solid balance sheet, etc..
In reply to RX Reven' :
Also, broker works for you. So they'll guide you through the process and help you maximize your payout. Every insurance company will try to minimize payout, it's not in their best interest to give you lots of money and your "agent" works for them.
etifosi
SuperDork
10/8/24 4:29 p.m.
The 'trick' insurance companies play is having high expenses for things like TV commercials and corporate aircraft. For example: Liberty Mutual owns and operates 5 Gulfstream jets.
In reply to Kreb (Forum Supporter) :
Unless there's an irrevocable trust, Proposition 19 induced property tax increases will probably kill the plan long before the insurance increases will.
Voters were told that the one million dollar exclusion would be increased each year...Prop 19 went into effect in November of 2020 and the one adjustment of 2.26% that has been made goes to February of 2025.
0.45% annual increase!!!
Anyway, back to the insurance discussion.
It's up here in Minnesota as well. They say it's hail claims. And by the number of new roofs on my street I'd believe it.
ddavidv
UltimaDork
10/9/24 7:06 a.m.
Driven5 said:
My concern with playing the annual insurance company roulette with a broker has always been, how do you ensure they're reasonable when you actually have to file a claim? Saving a few bucks on the front end isn't worth it if I'm going to get screwed that much harder on the back end.
Wise man. Having worked for a number of carriers, you'll only find out how good they actually are when you have a claim. I currently work for a company that isn't the cheapest, but they provide some significant extras and better service than a lot of others.
My rule-of-thumb advice is: the more a company advertises, the poorer their service is. My current employer does not advertise. And they are (I believe) the second largest in my state.
I was with Farmers for about 5 years, increases were minimal and no one was cheaper. The Ian hit Florida and the rate went thru the roof. I requoted and moved to Erie, the bill was about $100 less. Now Erie is playing the increase game, from 680 to 860. I changed deductible and liability, deductible from 2500 to 5000 and liability from 500K to 300K, now the bill is under 600.
With no claims in 20 years and 2 old people living here I think the risks are worthwhile. All insurers will try to screw you on a claim, that is why there are adjusters and lawyers. What is giving me high blood pressure is that Erie stock has basically doubled in the last 18 months. If I had bought stock when I initially signed with them my net cost could have been zero.
etifosi said:
The 'trick' insurance companies play is having high expenses for things like TV commercials and corporate aircraft. For example: Liberty Mutual owns and operates 5 Gulfstream jets.
Come on man you don't expect Limu and Doug to fly commercial, do you?
I only make a claim for something catastrophic. My mountain cabin has had 5-10 bear break-ins and miscellaneous claimable items. Not a peep from me to the insurance company. Just a call to the cousin and a work party.
We're paying $1194 with Farm bureau and we're just outside Ann Arbor. It was $1142 last year. No bills prior to that to compare to. My only claim was about four years ago for a fridge that fried itself during a brown out. We found it helped our rates a bit when we bundled house and auto insurance with one company, but I haven't gone insurance shopping in a decade. I'll add that dealing with them on that claim and my written-off MINI last year has been effortless. I'm quite content with them.
Duke
MegaDork
10/9/24 11:44 a.m.
JG Pasterjak said:
etifosi said:
The 'trick' insurance companies play is having high expenses for things like TV commercials and corporate aircraft. For example: Liberty Mutual owns and operates 5 Gulfstream jets.
Come on man you don't expect Limu and Doug to fly commercial, do you?
Whatever Liberty Mutual is paying their advertising agency, it's too berking much.
Definitely location-dependent. SE PA, Philly suburb. Small house on a small lot in a largely blue-collar area.
Home insurance: 2020 to 2021 - stayed about the same. Less than 10% jump for 2022. About a 15% jump for 2023 and then another 15% jump for 2024.
Township and School taxes have barely risen at all over the last 5 years.
To be honest, the possible increase in insurance and taxes is one of the main reasons I've procrastinated on my house renovation. What I want vs. the likely increase in operating costs. Especially as I look at hoping to retire ASAP and will be living on more of a fixed income.
ddavidv
UltimaDork
10/10/24 7:15 a.m.
porschenut said:
What is giving me high blood pressure is that Erie stock has basically doubled in the last 18 months. If I had bought stock when I initially signed with them my net cost could have been zero.
Erie lost money on auto policies the last two years. Can't say on property, but they don't insure further south than North Carolina...for good reasons.
Ian F (Forum Supporter) said:
Definitely location-dependent. SE PA, Philly suburb. Small house on a small lot in a largely blue-collar area.
Home insurance: 2020 to 2021 - stayed about the same. Less than 10% jump for 2022. About a 15% jump for 2023 and then another 15% jump for 2024.
Township and School taxes have barely risen at all over the last 5 years.
To be honest, the possible increase in insurance and taxes is one of the main reasons I've procrastinated on my house renovation. What I want vs. the likely increase in operating costs. Especially as I look at hoping to retire ASAP and will be living on more of a fixed income.
I am in the same region, and retired on a fixed income. When Farmers hit me with similar increases I dumped them. Not sure exactly where you are, but in my area(central bucks county) real estate value increases will justify home renovation. And since we have not found a better place to live fixing stuff just made sense.
ddavidv said:
porschenut said:
What is giving me high blood pressure is that Erie stock has basically doubled in the last 18 months. If I had bought stock when I initially signed with them my net cost could have been zero.
Erie lost money on auto policies the last two years. Can't say on property, but they don't insure further south than North Carolina...for good reasons.
Not surprised, their auto rates were great and increases minimal. But whatever they lost was more than made up by other areas. Their stock close yesterday was 532, a year ago 304. They must be doing more things right then wrong.
docwyte
UltimaDork
10/10/24 8:35 a.m.
Homeowners went up this year a ton in Colorado, mine jumped +$200/month. My annual insurance costs for house, cars, etc are crazy. Doesn't help that my wife bumped into a few things with her car.
I could probably save some money by switching, but I've had such good luck with USAA (our current insurance company) whenever I've had to make a claim that I'm reluctant to change.
