Homeowners' Insurance Increased by 50%! (Prosper: house, deductible, shop)

[TGentry]

Just received my renewal notice for my homeowners' insurance. I about fell over when I realized the premium had increased by 50% from a year ago.

I had to shop around last year as well since although my previous insurer left the premium the same, I noticed that they doubled my deductible without my requesting the increase or them calling it to my attention. I just noticed it buried in the bill.

As such, I changed to my current insurer, but looks like I'll be looking around again.

Any suggestions as to specific companies to contact for a quote?

[Skipito]

Too many variables to suggest just one company. North Texas is really rough right now for just about everyone, and you’ll find that 2% wind/hail deductible is getting more and more common.

What area are you in?
Any claims?
What year was the house built?

[escanlan]

Originally Posted by TGentry

Just received my renewal notice for my homeowners' insurance. I about fell over when I realized the premium had increased by 50% from a year ago.

I had to shop around last year as well since although my previous insurer left the premium the same, I noticed that they doubled my deductible without my requesting the increase or them calling it to my attention. I just noticed it buried in the bill.

As such, I changed to my current insurer, but looks like I'll be looking around again.

Any suggestions as to specific companies to contact for a quote?

Who is the current insurer that increased your rates by 50%?


Have you spoken to Texas Department of Insurance to determine if the underwriter filed for such a large rate increase?

[Skipito]

Originally Posted by escanlan

Who is the current insurer that increased your rates by 50%?


Have you spoken to Texas Department of Insurance to determine if the underwriter filed for such a large rate increase?

They wouldn’t have to file for that much in base rate. There’s literally thousands of discount matrix combinations that could lead to a 50% realized rate differential.

[Seguinite]

I moved away from 25 years with State Farm (no claims!) a few years back when they hit me with a 33% homeowners increase... which was explained by my policy expiration date being such that I missed one 'standard' increase, but got a double whammy at renewal. Nobody could ever beat State Farm for my auto rates (bundled with homeowners), but I went shopping after that.

[escanlan]

Originally Posted by Skipito

They wouldn’t have to file for that much in base rate. There’s literally thousands of discount matrix combinations that could lead to a 50% realized rate differential.

Yep just changed insurers this year and received numerous quotes with basic policy page descriptions. Lots of tricks they can pull to make the rate low the first year and then the second year they either pull the discount or say "Ooops you did not qualify for that discount" or they claim they got rid of the discount. When I compared the descriptions I caught some whacked and major differences even though I provided them with current policy information to match.


Unfortunately some insurers and Agents that are not so forthright (for lack of a less harsh term) know that most consumers make three mistakes when shopping and they take advantage of it.

1. Consumers look at the premium dollar number and trust the Agent implicitly to match their current policy instead of reviewing the offering to their existing policy and their needs. Many consumers look only to save in the short term (policy premium) rather than plan for the potentials in the long term (actual coverage).
2. It's a real PITA but consumers do not educate themselves or seek education on how their policies are constructed and what they mean. The majority of policies are very well written to be confusing to all but those that write and sell them. Instead of asking questions or seeking guidance from an actual trusted and knowledgeable source they either miss much or misinterpret much.
3. They wait until near if not the last minute to start their shopping. They can easily obtain quotes quickly but they drag it out to put you close to current policy expiration. Consumers also don't stay on top of them to receive responses in reasonable time.

The insurance industry has morphed over time to match the current concept of getting the money now and not worrying about renewals. After all they lose one client due to games and pick up another from another carrier who played games. At least they got their money for the first year.


As for the rate inquiry with TDI it would be interesting to know since they really do nothing to control rates. They have no real authority or teeth with which to do it. It would not be hard for an underwriter to obtain large rate increases here.

[Katana49]

We got a slight "decrease" in our premiums... But our deductible went from 1% to 2% for 2018, so really it was an increase.

[escanlan]

Originally Posted by Katana49

We got a slight "decrease" in our premiums... But our deductible went from 1% to 2% for 2018, so really it was an increase.

Did you request the increase to 2% or are they just no longer offering a 1% deductible?

[Katana49]

Originally Posted by escanlan

Did you request the increase to 2% or are they just no longer offering a 1% deductible?

We did not request it, I do not know if they are offering the 1% anymore, I didn't ask. We all got hit here in Prosper in 2017, for 2018/2019, I played the odds that we wouldn't be hit with another hailstorm like that so soon after, but for next year I'll be shopping around for another 1% policy and see what I can find.

[serger]

Originally Posted by Katana49

We got a slight "decrease" in our premiums... But our deductible went from 1% to 2% for 2018, so really it was an increase.

On ours, I asked to see what the premium would be with 2%. Of course it dropped significantly but still couple hundred higher than last year's 1% premium.

After my agent didn't find anything better I shopped around a bit with same luck. I might go with 2% for now to have more time to explore. But I definitely think that roof wise in the spring that's not advisable.