Homeowners insurance costs- Coastal Towns?? (Jacksonville, New Bern: houses, living in, military)

[marc515]

My wife & I were in Jacksonville and New bern last week looking at homes, and found real nice homes in both towns. We like the Commons in Jacksonville, and Brices Creek area in New Bern.

However, one home owner indicated his homeowners insurance was increasing from $1,200 to $1,900. Granted his home in the Commons was a little under $300K, and had a pool, but the indication was it was due to hurricanes.

Has anyone else experienced such an increase, and is wind and hail that costly in the area?

Thank you,...marc

[mm34b]

Recent News Items

Homeowner insurance premiums will rise by 25 percent along the coast this year as a result of the rising cost of homes, higher repair costs and a recent history of severe damage from storms, state Insurance Commissioner Jim Long said. The new rates, which take effect May 1, are the result of a settlement between the insurance industry and the state Department of Insurance. The average premium increase on home insurance statewide is 5.4 percent, far below the 21.9 percent jump sought by insurers. Rates are set by region, based on the number and type of claims and repair costs in each area. The last rate increase was in 2005, when rates along the coast jumped 15 percent. The last storm to hit the coast was Hurricane Ophelia in 2005, which caused more than $40 million dollars in damage.

Wary of the rising risk of hurricanes, Allstate Corp. has added coastal regions of North Carolina and South Carolina, Alabama, Maryland and Virginia to the growing list of areas nationwide where it is cutting back homeowners insurance coverage. The nation's second-largest home and auto insurer behind State Farm confirmed Thursday that it is dropping coverage for about 12,000 homeowners in eight counties of South Carolina, 4,000 in 14 counties of North Carolina and an unspecified number in Alabama. Allstate is just one of the insurers that have scrambled to reduce their exposure to future catastrophes since Katrina, including Nationwide Mutual Insurance Co. and MetLife Inc.

[ExtinctBird]

MM, what is considered "coastal" from the perspective of insurance rates? Is it anyone living in a county that is on the coast? Is it based on flood plains, or distance from the coast at all? I am interested in finding insurance cost info for houses on the mainland, maybe a mile or 2 from the coast.

[mm34b]

Originally Posted by ExtinctBird

MM, what is considered "coastal" from the perspective of insurance rates?

The definition is probably an insurance company determined one, would be my guess. Probably any area with a history of being touched by storm surge.

[mm34b]

I saw another "coastal" insurance definition from the state's Insurance Office using the coastal areas east and west of the Intracoastal Waterway in determining rates.

[deleonmx]

I am new to this site. We live in Hubert (Onslow) and we just received our preliminary statement today for Homeowner's. Our premiums have gone from $859 to $2200. We have never had a loss, filed a claim. Our house increased in value only $7,000 according to USAA, and still our rates have increased almost triple. USAA has no response other than it's because we are considered Coastal. Well we have lived here for four years, so nothing has changed? I just don't get it.

[ncmomtothree]

My mom lives in Washington Co nowhere near water and now will pay $2200/yr for her homeowners for about $200,000 policy. This is outrageous-how can anyone let alone seniors pay for this? BTW-we have heard that east of I95 was considered the zone for coastal rates. I think Hurricane Floyd played a big part in this.

[southernlady5464]

We just moved here. Our Homeowner's Insurance is USAA (I was an officer in the military) and altho they insured our 180,000 house for just over $600. that did not include wind and hail. They did send us to a general agency run by NC for USAA members that covered us for another $800+ for just wind and hail damage. The flood insurance was not necessary cause we are not in a flood plain. HOWEVER I told my husband that I would rather have it and not need it. So we pay another $225 for it.

The problem with insurance is you pay for those who don't have it or for those areas who got hit so badly, like Louisiana/Mississippi with Katrina. Agencies can only sustain so much before going belly up. And the ones hit hardest usually can't pay higher premiums that it would cost.

And unfortunately, hurricanes have a bad habit of being unpredictable. Liz

[mm34b]

This is a chart from the North Carolina Department of Insurance. It will give readers a rough idea of the difference in homeowner's insurance costs across the state for a hypothetical home valued at 100K with all factors being equal except the home's location. The cost of the policy ranges from a high of $1,436 along the coast to a low of $350 in the mountain region of the state. Effective May 2007.

http://www.ncdoi.com/Media/Documents...yTerritory.pdf

[southernlady5464]

It's interesting that Brunswick/New Hanover/Onslow/Pender are in two places. One is 6 at $1,436.00 and the other is at 42 at $897.00. How do you know which one you fall in? Given that mine was in the $800 range, I suspect I was in the 42. Liz