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West Cental Arkansas | Got the bill for our home insurance today. Price increased 67.5% from last year. This increase is for our home only. No out buildings. Nothing else but our home.
I have all my insurance—-home—-vehicles—barns—-equipment—farm liability with the same company. Been there all my life. I am 70 years old now.
I added no more coverage. No more of anything.
No claims. No changes whatsoever at all.
Is this due to increase in price of housing?
I didn’t get the mail til after 5 tonight so I couldn’t find out anything, but tomorrow morning I will be there bright and early.
Anyone else experienced this? |
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| Mine went up about 80%. No claims either. Wouldn’t be a huge deal if it hadn’t been going up 10-20% a year for the last several.
Germania. They wouldn’t add a boat I bought either. Fixing to do some shopping. If a customer in good standing can’t add to a policy, then why even be open for business? My lady says it’s due to the big payouts from storms this spring in our area.
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Central Il Morton | SamT - 11/6/2023 19:00 Mine went up about 80%. No claims either. Wouldn’t be a huge deal if it hadn’t been going up 10-20% a year for the last several. Germania. They wouldn’t add a boat I bought either. Fixing to do some shopping. If a customer in good standing can’t add to a policy, then why even be open for business? My lady says it’s due to the big payouts from storms this spring in our area.
Not just your area.
Mine went up a bunch, didn’t bother figuring out percentage. |
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sc kansas | do you have replacement cost insurance? if so did insurance company increase substantially the value of your house? |
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North central MO | Is it because replacement costs are so high? Seams local housing markets are insane. |
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WC IL | Big part of it is high loss ratios the last few years. My agent told us a month or so ago that there were several companies that were going to quit selling home insurance. |
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| T-rowe - 11/6/2023 20:30
Is it because replacement costs are so high? Seams local housing markets are insane. the actual replacement cost has nothing to do with replacement cost insurance. I just means insurance company wii pay stated value on a total claim, not depreciate the property.
Edited by Boone & Crockett 11/6/2023 23:50
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NE NEBRASKA | I buy through a smaller mutual insurance company and last year by September they already paid out 140% of premiums. Storm damage repair claims were adding up with some areas hit by three different storms. Without increasing premiums the company would be insolvent within 3 years if bad storms continue |
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NW Washington | All the flooding, tornados, hurricanes, and wildfires that have been occurring in some parts of the country are causing insurance companies to lose money. There are places in Florida and California where is becoming impossible to buy home insurance.
Weather is said to be changing because of climate change. Climate change is becoming harder to deny. |
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Frost,Mn | I have a couple mini storage rental buildings and my insurance went up 40 percent this year. My renewal came with a letter of explanation claiming replacement costs had risen and was reflected in premium. No electricity or water so my only exposure would be extreme wind. |
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Gretna, VA | JohnW - 11/7/2023 01:55
All the flooding, tornados, hurricanes, and wildfires that have been occurring in some parts of the country are causing insurance companies to lose money. There are places in Florida and California where is becoming impossible to buy home insurance.
Weather is said to be changing because of climate change. Climate change is becoming harder to deny.
you, sir, hit the nail, on the head. |
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Cambridge, southwestern Nebraska | Most will agree the weather is changing. It’s the reason behind the change and the thought that we as humans can have much if any affect on that change that is debatable. |
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Chebanse, IL..... | I have heard that much of the home insurance increases (all companies) is attributed to the big hurricane damage in FL in recent years.
If this is in fact true, I don't know why we in NE IL have to help pay the damage to insurance co. by those living where hurricanes have occurred since the beginning of time. Does it surprise FL people to find that hurricanes have damaged property, including homes & vehicles. One always wonders where those cars/trucks submerged in salt water show up later.
Yes, in NE IL we can have some shingles torn off due to high winds, or an occasional tornado. But, they are localized in this part of the country.
Maybe if no one sold home insurance in FL then people would move back to the midwest and our insurance would go down also. |
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| It’s likely the cost to replace a home if it burned down has doubled the last 2 years. Thus the premiums are going to double. |
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| Heard a financial analyst podcast yesterday, his went up, summed it up to inflation |
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central NE | The main reason is the cost of re-insurance has more than doubled per year for the last 2 years. There have been many companies that have stopped selling it also. This has affected all insurance. Crop/Hail is going to go up substantially also next year. The cost of repairs has gone up so much that rates have to increase just to try to keep pace. I am a farmer and also a director of a farm mutual insurance company in NE. Its astounding how much things cost to repair and replace. |
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Nw Iowa | Insurance companies have had a pretty rough run. Weather has been changing for along time. Ask somebody who went thru the 30’s. My grandfather described unreal events. |
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| Anybody can call it whatever they want but inflation is the bottom line cause.
Everything has went up in price because of inflation.
If you want to know where to place blame for inflation, look to Washington. They all deserve blame, some more than others.
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Sioux County, NWIA | Anything insurance related is increasing in cost, for a variety of reasons. And you are not the only one that will or has called the insurance guy. Called mine this year when our automobile insurance went up way out of line. They cooked up a better deal. Called again a few weeks ago to add a piece of machinery to the list. He said its no fun being an insurance agent now with all the price increases, and presumably crabby customers. |
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Pittsburg, Kansas | Exactly. Check out what Steven Koonin has to say about it on Youtube. He actually has a book out that uses all government and official statistics to make his case. |
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| We’ve had whole towns wiped out by fire and or tornado forever.
It’s political policy making them worse. Stuff like limiting the water use to fight fire in Hawaii and leaving all the dead wood In California forests.
Have you seen how they built stuff these days? The bare minimum, no wonder hurricanes rip roofs off more. Not to mention the young fast growing wood we use is not even close to as strong as the wood in 1950’s home.
Stuff is packed tighter together so it’s only natural a tornado is going to damage more homes when it goes through an area. |
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| Ron..NE ILL..10/48 - 11/7/2023 05:23
If this is in fact true, I don't know why we in NE IL have to help pay the damage to insurance co. by those living where hurricanes have occurred since the beginning of time. Does it surprise FL people to find that hurricanes have damaged property, including homes & vehicles.
Thats the entire point of insurance. It's a risk pool. Certainly those who live in areas prone to high dollar claim events should pay more, but the idea of insurance is to spread the risk across a wide risk pool.
AaronSEIA |
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Mid Michigan | Not to mention all the people with more money than common sense that build their "dream" houses on the side of a cliff, on a wooded mountain side, on the coast of a hurricane beach, in a flood plain along a river. Then are shocked by a wildfire, hurricane, or flood. Insurance company reps are just as guilty for even considering insuring some of those places. |
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| SamT - 11/7/2023 08:02 We’ve had whole towns wiped out by fire and or tornado forever. It’s political policy making them worse. Stuff like limiting the water use to fight fire in Hawaii and leaving all the dead wood In California forests. Have you seen how they built stuff these days? The bare minimum, no wonder hurricanes rip roofs off more. Not to mention the young fast growing wood we use is not even close to as strong as the wood in 1950’s home. Stuff is packed tighter together so it’s only natural a tornado is going to damage more homes when it goes through an area. Yep, in the old days tornadoes only went through trailer parks******* |
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| Kooiker - 11/7/2023 07:37
Anybody can call it whatever they want but inflation is the bottom line cause.
Everything has went up in price because of inflation.
If you want to know where to place blame for inflation, look to Washington. They all deserve blame, some more than others.
100% correct |
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Mountains of Colorado and Montana | davpal - 11/7/2023 08:09
Not to mention all the people with more money than common sense that build their "dream" houses on the side of a cliff, on a wooded mountain side, on the coast of a hurricane beach, in a flood plain along a river. Then are shocked by a wildfire, hurricane, or flood. Insurance company reps are just as guilty for even considering insuring some of those places.
So true! Someone built a huge dream home on a rocky cliff. This house required plenty of careful measurements to make it fit on a slope and incorporate concrete steps that blended with the exterior and furthermore facilitated access to the home and back yard. This extra expense was all for the benefit of the views seen from the cliff. One could’ve built this lovely home on a flat area out in the country, far removed from any cliffs, and it would’ve been just as lovely and far less costly. The ending of this fabulous home came about when a gigantic crack appeared in the cliff.
The back yard went first over the cliff as it fell away. Then another crack formed beside the home. The crack widened, threatening more nearby homes. The dream home no longer exists. It was insured but the insurance company initially said they would not cover this unforeseen problem. They later changed their decision on this and agreed to pay out. |
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south central WI | Boone & Crockett - 11/6/2023 22:50
T-rowe - 11/6/2023 20:30
Is it because replacement costs are so high? Seams local housing markets are insane. the actual replacement cost has nothing to do with replacement cost insurance. I just means insurance company wii pay stated value on a total claim, not depreciate the property.
I think the point was that if a xXxX as ft home took 250k to replace a couple years ago, it now costs the insurance company $400-500k to replace. They have to charge more to cover the liability they are taking on. |
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North Dakota, USA | Ron..NE ILL..10/48 - 11/7/2023 06:23
I have heard that much of the home insurance increases (all companies) is attributed to the big hurricane damage in FL in recent years.
If this is in fact true, I don't know why we in NE IL have to help pay the damage to insurance co. by those living where hurricanes have occurred since the beginning of time. Does it surprise FL people to find that hurricanes have damaged property, including homes & vehicles. One always wonders where those cars/trucks submerged in salt water show up later.
Yes, in NE IL we can have some shingles torn off due to high winds, or an occasional tornado. But, they are localized in this part of the country.
Maybe if no one sold home insurance in FL then people would move back to the midwest and our insurance would go down also.
You cannot just blame the hurricanes. Insurance companies in the Midwest have had several terrible years in a row due to not only rising cost of claims but major damage from the derecho windstorms that seem to hit every year now. They seem to do the same type of damage as a hurricane, just in a less densely populated area.
It is easy to say that there have always been derechos and it is just that we hear more about them now. But insurance is a business of statistics and they know their past claim payments, damage amounts, locations, causes, etc. They are saying there have been more of them in recent years than in the past. I cannot prove them wrong.
Then, take into account that your company, in order to cover their own butts, buys reinsurance that pays them back after they meet certain thresholds of claim payouts. There are reinsurance companies that are leaving the business or limiting what they will take in certain parts of the country due to the unpredictability of losses. Right now the center of the country is an area they are leery of due to not knowing if these storms are the new normal or just a short term occurrence. One thing that really scares the insurance industry is not knowing.
Most of the companies that write hurricane insurance write it with an extremely high deductible, and an extremely high premium. Hurricanes have been common long enough that over the long term, the industry know what to expect for losses (Generally speaking) and have tried to price their products accordingly.
Up here in ND, we are seeing our rates go up substantially too, but nothing like I have been hearing from areas south of here. The way it sounds, it will be painful for a couple years but I am just glad that the companies I work with did not leave the market.
Eric in ND |
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NE NEBRASKA | I don't think Florida can be blamed because very few insurance companies do property insurance business there. I believe Florida has a state run insurance pool that's basically broke.
Edited by DonkeyShowFarms 11/7/2023 08:44
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nc Ia. | https://www.c3headlines.com/2012/07/extreme-climate-change-severe-we... Did insurance rates go up in the 1930’s? |
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| Ron..NE ILL..10/48 - 11/7/2023 06:23
…..then people would move back to the midwest and our insurance would go down also.
Some of us in FL can only hope and dream…. |
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| We have always had hurricanes in FL. It was just a before things got sensationalized and dramaticized. |
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chortitz, manitoba | Not really. 200 years ago, prairie fires, tornadoes and floods occurred. 200 years ago a lighting strike caused prairie fire takes out 30,000 acres of grass land. Tornadoes also happened. All they did was burn grass and rip up trees. Now those same areas have 3 million residents. Well there's going to be some major asset damage. Class 5 hurricanes don't do any damage in the middle Atlantic |
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Floyd County, Iowa | Boone & Crockett - 11/6/2023 23:50
the actual replacement cost has nothing to do with replacement cost insurance. I just means insurance company wii pay stated value on a total claim, not depreciate the property.
You might want to add that you have to rebuild to get the replacement value. If you just take the money and don't do the repairs/replacement, you only get the depreciated price. The company will initially pay you the depreciated price until reconstruction is done, then pay you the rest upon completion (to ensure that the property is rebuilt). This from my agent. |
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| bsfarms - 11/7/2023 08:31
Boone & Crockett - 11/6/2023 22:50
T-rowe - 11/6/2023 20:30
Is it because replacement costs are so high? Seams local housing markets are insane. the actual replacement cost has nothing to do with replacement cost insurance. I just means insurance company wii pay stated value on a total claim, not depreciate the property.
I think the point was that if a xXxX as ft home took 250k to replace a couple years ago, it now costs the insurance company $400-500k to replace. They have to charge more to cover the liability they are taking on. |
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| oldbones - 11/7/2023 09:23
Boone & Crockett - 11/6/2023 23:50
the actual replacement cost has nothing to do with replacement cost insurance. I just means insurance company wii pay stated value on a total claim, not depreciate the property.
You might want to add that you have to rebuild to get the replacement value. If you just take the money and don't do the repairs/replacement, you only get the depreciated price. The company will initially pay you the depreciated price until reconstruction is done, then pay you the rest upon completion (to ensure that the property is rebuilt ). This from my agent. |
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Alton, Ia | https://www.youtube.com/watch?v=F94jGTWNWsA
The smirk at the beginning is golden. |
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Central In | You may be able to save some money if you raise the deductible...I did. |
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SC MN | Kooiker - 11/7/2023 07:37 Anybody can call it whatever they want but inflation is the bottom line cause.
Everything has went up in price because of inflation.
If you want to know where to place blame for inflation, look to Washington. They all deserve blame, some more than others.
Interesting statistic about house size and number of occupants:
Since 1970 house size has nearly doubled, while occupant numbers have shrunk. |
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| The saying “like a tornado in a trailer park” came from when it hit a trailer park it destroys the whole thing. Most spec houses today are built no better than a trailer house.
I guess now we can say like a tornado in a sub division.
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| Yes it’s interesting but that doesn’t explain why the same house today costs 67% more to insure than it did a year ago.
You can blame anything you want but the root cause is inflation.
Inflation ramped up during Covid and it has caught up to the insurance industry.
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SW minn | I’m on the board for an insurance company. Get used to it. So many scams out there. So many derecho’s out there. And the cost of replacement is unreal. Five years from now you’ll just be happy just to have insurance or to get insurance. |
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Nw Iowa | We rent office space from our insurance agent so ran into him as I was leaving. Asked how insurance business was and he said rough. He is very good agent and very thorough about his insures so I was surprised thinking he meant he was losing business. He said no, it is the companies, I think he said 20% plus raises was more common, but just fact companies are looking for ways to keep liability down. He thinks 5000$ deductible will become more and more common. He also said a lot of companies are removing paint match clause where if your siding or flooring gets damaged, they will repair damage but not whole house. He said there have been instances where a kids ball has hit vinyl siding and because it is faded some homeowners demand the whole house be resided. He also said singles claims have almost doubled in cost over last 18 months. People are expecting a lot more from insurance than they used too. Also said there are a lot of companies dropping people that have excessive claims and hard to find a insurance company that will take them on. |
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Sw mn | We have had a $5000 deductible for a long time.
Better off fixing the small stuff your self. |
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Nw Iowa | I agree, same on our farm. Don’t think a lot of homeowners who live from payment to payment could handle it very well. |
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Wisconsin | Yep, people see the neighbors get a free roof from a hail storm and think they should get one also. Then they have a water leak or whatever and of course that's what insurance is for, surprise surprise when they get cancelled. Insurance company only wants people who never have claims. |
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chortitz, manitoba | I do quite a bit every year that could be an insurance claim. Gotta keep the house up. They go to crap real fast if you dont keep up on everything. Especially water related. |
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South Central MN | More disasters in general so they end up paying out more, so decided to raise rates everywhere to compensate.
Guessing crop insurance might be more expensive also, same reason, the weather. |
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Chebanse, IL..... | I think I have only experienced one derecho in my lifetime. Blew corn down, some trees. I don't remember building damage.
So, apparently the increases are justified. |
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Home Insurance 67.5% Increase
