The first ten years at our house are rate hardly changed. The last four years we had to shop at renewal deadline every year. It seems companies will try to get you in low and then try to raise rates on you in the second year. I am sure there are people out there that don’t even pay attention or know they can get better rates.
OT: homeowners insurance
- Thread starter Paul in uhh
- Start date
StinnettFrog
Active Member
My USAA insurance has stayed pretty steady. Small increases but nothing like I’m hearing here. Auto isn’t the best but property has stayed good.
Deep Purple
Full Member
When I bought my first home in 1988, I was with State Farm but didn't really like their customer service, so I soon switched to Allstate, which has stood by us very well ever since -- except on roofing claims. But all insurance companies fight roofing claims. It's like they they're overextended on such claims, so they routinely deny or curtail them.
Allstate has never disputed any other claims, such as new walls, ceilings, plumbing repairs, mold remediation, wood flooring, interior repainting, pool renovation/replastering, rugs, furnishings, new water heater, etc. after the Great Freeze of 2021. About $40,000 in repairs paid without a squeek. But I still had to get a ruling from our HOA architectural standards committee to force Allstate to replace my whole roof instead of just a spot-patch job.
The trick seems to be sticking with one company as long as possible so your policy can be grandfathered in when premiums or deductibles increase. I guess the company figures that the cumulative premiums you've paid over the long term far outweigh the cost of any short-term claims, so they're very cooperative. The risk analysis works out.
As a result, we've been partially shielded from rate increases and our deductible is still only $1,000. Part of the formula seems to be having a really good agent who will take up your cause with corporate. A conscientious agent makes a huge difference. We have a great one.
Allstate has never disputed any other claims, such as new walls, ceilings, plumbing repairs, mold remediation, wood flooring, interior repainting, pool renovation/replastering, rugs, furnishings, new water heater, etc. after the Great Freeze of 2021. About $40,000 in repairs paid without a squeek. But I still had to get a ruling from our HOA architectural standards committee to force Allstate to replace my whole roof instead of just a spot-patch job.
The trick seems to be sticking with one company as long as possible so your policy can be grandfathered in when premiums or deductibles increase. I guess the company figures that the cumulative premiums you've paid over the long term far outweigh the cost of any short-term claims, so they're very cooperative. The risk analysis works out.
As a result, we've been partially shielded from rate increases and our deductible is still only $1,000. Part of the formula seems to be having a really good agent who will take up your cause with corporate. A conscientious agent makes a huge difference. We have a great one.
Paint It Purple
Active Member
15-20% inflation. Recall the stories about $30 2x4 lumber. Prices of everything don't go back to where they were, only the rate slows.
We bought into it, encouraged it, hid from it, and voted for it.
We bought into it, encouraged it, hid from it, and voted for it.
jack the frog
Full Member
USAA has been real steady with us on what amounts to two family homes, one in Midland owned for 60 years and a much newer one in Conroe. Both are being sold with the death of dad and us working mom towards a tiered care community. Less will be more. And yes, USAA just went up on my auto by $400.00 a year.
Hoosierfrog
Tier 1
Do plaintiff lawyers count as companies?
Frogs1983
Full Member
Independent Insurance Agent, Full Disclosure. I represent about 35 Carriers, including Travelers and Allstate. All are taking rate in Texas. Fact is , no Carrier wants business growth in Texas right now. I have been told this personally by some of my Carrier Reps. You achieve this by raising rates, non-renewing certain Policies, making Underwriting Guidelines more stringent, etc.. Texas is one of the 3 highest costs States in the Country for Insurance, along with Louisiana and Florida. Texas has it all when it comes to Claims, Hurricanes, Freezing, Hail Damage, Tornadoes, Wild Fires, Freezing Weather claims, Earthquakes in some areas, and on and on and on!
People moving here from California are in shock when I quote them Insurance costs. Not everything is more expensive in California, lol. Allstate has stopped offering new Homeowner's Polices on the Independent side in Texas as of January 2023. Some Carriers we represent have increased Wind/Hail Deductibles to 2% in certain areas, or are going to Depreciated value/ACV on roof claims, depending on age of roof. When State Farm (controls over 30% of market in Texas ) goes to 2% W/H Deductible, all other Carriers in D/FW will follow. Already that way in Houston, Coastal areas of Texas. 2% W/H Deductible is standard there.
We are in "Hard Market", and it is projected to remain for another 18 months or so.
People moving here from California are in shock when I quote them Insurance costs. Not everything is more expensive in California, lol. Allstate has stopped offering new Homeowner's Polices on the Independent side in Texas as of January 2023. Some Carriers we represent have increased Wind/Hail Deductibles to 2% in certain areas, or are going to Depreciated value/ACV on roof claims, depending on age of roof. When State Farm (controls over 30% of market in Texas ) goes to 2% W/H Deductible, all other Carriers in D/FW will follow. Already that way in Houston, Coastal areas of Texas. 2% W/H Deductible is standard there.
We are in "Hard Market", and it is projected to remain for another 18 months or so.
An-Cap Frog
Member
Eight
Member
that 2% w&h is actually 5% w multiple carriers on some properties south of i10 and in far se harris county we have seen travelers and other carriers come back wanting to exclude w&h coverage on the policy which basically is the intent of the 5% deductible
real problem on those situations is the carriers want to exclude w&h and there isn't a viable option as these properties aren't in the covered zip codes and counties for twia
IMAFROGDAD2
Active Member
Insurance companies are financial institutions. They are rated based on their reserves. They take your money (premiums) and invest it. If the stock market is down (like it was in 2022), bond market is down (due to interest rates and inflation), claims are up (due to catastrophic weather events and high rebuilding costs), this is the perfect storm for higher insurance premiums.
Eight
Member
the coverage is cheaper in cali for the consumer because the state has not been as lenient with requested state increases
allstate announced last november they were pausing new home, condo, and commercial due to their claim the cost to insure new clients is more than the premium they are allowed to charge due to wildfire losses, replacement costs, and skyrocketing reinsurance premiums
state farm did the same in june in cali and both aren't writing new business in florida (different issues in that state). farmers just announced they are closing down the florida market to new business
Frogs1983
Full Member
State regulates rates in California. Many Carriers are ceasing new business in Cali. Geico closed all it's Offices in California earlier in year, something like 68 or so.
Eight
Member
that market is so screwed up with their over regulation and the moronic environmental policies that set up perfect conditions for wildfires
then you have florida with their overbuilding in high risk flood areas, the issues with lawsuits, and then moronic companies such as upc doing stupid [ Finebaum ] w claims
frogetaboutit
Full Member
What you say about increases and USAA is true but their premiums typically start out higher than other companies in my experience. I used to not mind paying that premium for the service they provided but they’re a shell of what they once were quality of service-wise. I’m only saying that from a home-owner’s and auto policy holder - not sure about their other services.
82 Frog Fever
Active Member
Absolutely on the dwelling coverage. There are so many people out there who insure for market value, instead of replacement cost. …..and the insurers just stand by and let them do it.
Eight
Member
sadly, with a number of agencies, especially those working online with as little interaction as possible
those generating the quotes don't know, don't care, don't ask, and go by info from county appraisal districts, and realtor websites
jack the frog
Full Member
Same feeling regarding USAA. They seem to fight pretty hard for every claim dollar wherein the distant past they seemed to over-accommodate on the claim end.
Off target a bit but one of my oldest investments is Markel. First shares acquired at my dads suggestion almost 30 years ago. They write in the 90 combined ratio territory consistently. Specialty underwriters. Darn good investment.
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