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Old 05-25-2015, 01:02 AM
 
176 posts, read 133,592 times
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I got a quote for home owners insurance that costs me 4800$ per annum for a property value of 295K on 3100 sq ft. Is that crazy or am I not seeing things the right way?
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Old 05-25-2015, 07:32 AM
 
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that seems very high, but if you are in a tornado prone, or hurricane prone area or on an earthquake fault that could be part of the reason.
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Old 05-25-2015, 07:34 AM
 
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And you location is ?????

Without that no one can say if that's high or not.
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Old 05-25-2015, 02:01 PM
 
Location: Phoenix, AZ > Raleigh, NC
14,350 posts, read 17,589,339 times
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And claims history? Value to rebuild the house (you're not insuring the land)? Your credit? Got a dog on the dangerous breed list? Using the same company as your auto insurance (usually cheaper that way)? Sekected a $1000 deductible?
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Old 05-25-2015, 03:00 PM
 
Location: NC
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Insurance is high where there are special hazards. Flood prone/hurricane areas used to not be charged the full amount for their risk as it was partially spread to houses in the rest of the company's service area. After certain changes in the law, those areas must now fully support their own risk, making the cost much higher than those folks in potential flood/hurricane zones were used to seeing, while bringing the rates for those nowhere near the water closer to fair prices.
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Old 05-25-2015, 05:32 PM
 
Location: Ozark Mountains Arkansas
1,799 posts, read 1,113,110 times
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I'm in south Louisiana and our homeowners rates are very high (not including flood). For my home, my quotes were between 4K - 6K /year but I was able to get that way down by letting the insurance company also insure my vehicles. I'm paying $2800/year, but the deductibles are outrageous, especially for a hurricane. I think I'm responsible for the first $12K.

I'm currently listed for sale and moving north. I've had enough of living here.
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Old 05-25-2015, 05:35 PM
 
Location: Ozark Mountains Arkansas
1,799 posts, read 1,113,110 times
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Quote:
Originally Posted by luv4horses View Post
Insurance is high where there are special hazards. Flood prone/hurricane areas used to not be charged the full amount for their risk as it was partially spread to houses in the rest of the company's service area. After certain changes in the law, those areas must now fully support their own risk, making the cost much higher than those folks in potential flood/hurricane zones were used to seeing, while bringing the rates for those nowhere near the water closer to fair prices.
Being flood prone has no bearing on homeowners since homeowners does not cover floods at all. I'm no where near the water, have never filed a claim, but still am in a high rate area. And for the past 10 years, all the citizens of Louisiana have had to pay a citizens fee yearly through their homeowners to bail out the insurance company (Citizens) that insures those near the coast. So yes, we are still paying higher rates so others can live in high risk areas.
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Old 05-25-2015, 10:13 PM
 
176 posts, read 133,592 times
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Well I am looking at property in Georgia. It is not in flood or hurricane zone. I have had a good credit and no dog, so there should be no reason why it is that high. Any ideas?
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Old 05-25-2015, 10:18 PM
 
Location: VA
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I would get another quote. That seems excessive.
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Old 05-25-2015, 11:42 PM
 
Location: Phoenix, AZ area
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Our rates are based off the house cost to rebuild here not the actual value of the home so much, obviously full replacement means higher end homes cost more to rebuild. The house I just purchased with my wife it cost $800 a year to insure for a 2200 sq ft home in the mid range for upgrades (granite counters, 20" tile, hardwood floors, basic stuff). Our insurance estimated our replacement cost at $350k so that's how much we got covered, they also have our cars and we aren't in any hazard zones so it would go up from there. On one of our lower end rentals (carpet, vinyl flooring, laminate and cultured marble counters) with 1600 sq ft we pay $635 a year total estimate to replace is about $280k I think. You can't just base your insurance on the house value it is normally based off replacement cost with a risk factor, live on the coast then your rates go up due to hurricanes.

Insurance rates are very local so without knowing where you are no one can really help you.
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