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I just received my renewal papers from my homeowner's insurance company. I noticed my premium has gone up by about $120 a year. It appears that they updated the value of my home and thus the amount of coverage they think I need. Is this somehow related to the recent wake county property reassessments? Do they have access to these records? The one thing that surprises me is that they put my replacement value coverage at a value that not only exceeds my tax assessment, but it also exceeds what I paid for the house and I fairly certain that my home's value has remained unchanged since my purchase. I plan on calling my insurance company to clarify the changes and increase in fees, but I'm curious if others have noticed a similar increase in their insurance premium this year?
I just received my renewal papers from my homeowner's insurance company. I noticed my premium has gone up by about $120 a year. It appears that they updated the value of my home and thus the amount of coverage they think I need. Is this somehow related to the recent wake county property reassessments? Do they have access to these records? The one thing that surprises me is that they put my replacement value coverage at a value that not only exceeds my tax assessment, but it also exceeds what I paid for the house and I fairly certain that my home's value has remained unchanged since my purchase. I plan on calling my insurance company to clarify the changes and increase in fees, but I'm curious if others have noticed a similar increase in their insurance premium this year?
1. Yes. They have access to Tax Valuations. It is public record.
2. Tax Valuation is only loosely linked to market value. It should not be a material factor in your insurance premium.
3. Your lot is factored into your Tax Valuation. If Hurricane Bubba takes the house away, you will still have the land. I would think it fair to deduct the value of the land when calculating replacement value of the house.
4. They may be responding to the increase in commodities' values, the stuff we use to build houses.
Hmmmm. Sweetie tells me our bill is late. I need to make a call tomorrow and ask for it.
3. Your lot is factored into your Tax Valuation. If Hurricane Bubba takes the house away, you will still have the land. I would think it fair to deduct the value of the land when calculating replacement value of the house.
Thanks for that insight Mike. Your third point brings up another concern of mine. While I agree with the total combined tax assessment of my house/property since it is close to what I paid and close to what my neighbors with similar homes paid, I am a little shocked at what the land is assessed at. Most of the .08 acre lots in my North Raleigh neighborhood were given a tax assessed value of $46K. Seems a little high to me. Like I said I agree with the overall assessment for the property as a whole but the individual breakout of the land value seems off to me. Is land in North Raleigh really going for $575K an acre these days????
Thanks for that insight Mike. Your third point brings up another concern of mine. While I agree with the total combined tax assessment of my house/property since it is close to what I paid and close to what my neighbors with similar homes paid, I am a little shocked at what the land is assessed at. Most of the .08 acre lots in my North Raleigh neighborhood were given a tax assessed value of $46K. Seems a little high to me. Like I said I agree with the overall assessment for the property as a whole but the individual breakout of the land value seems off to me. Is land in North Raleigh really going for $575K an acre these days????
$575,000/acre? Well, if it is developed to allow you to build 12 homes there, it just might be.
Your homeowner's insurance should not be insuring your land. Is that what I'm reading? It is late and I could be confused but when you insure your home and your personal property, you don't insure your land because in case of fire (for example) your land is still there.
$575,000/acre? Well, if it is developed to allow you to build 12 homes there, it just might be.
I guess that is it. I was thinking of getting a breakfast sandwhich on my way into work tomorrow. I was going to stop by the ATM to get some cash, but maybe instead I will just grab a handful of dirt from my backyard. At $46K per .08 acre I figure a handful of dirt has got to be worth a few bucks!
I think I will be calling my insurance company tomorrow to adjust my coverage so I'm not insuring my land.
I have never in 20 years of home ownership in this state and three others had my homeowner's insurance raised. Is this status quo in NC? Even in this state, there has been no increase in my HO insurance over eight years.
I received a letter a few months ago explaining how home improvements could modify valuation of property (probably because of the clue report and my home improvements noted there), but I have not received a modified bill.
I don't think insurance companies can raise a homeowner's rates without advance notification and with the option for a homeowner to opt out, kind of like health insurance increases. I don't get it. Can they automatically do that?
best,
toodie
I didn't think they could do that either unless you added on to your home or something. Ours has not gone up although our tax assessment did.
That really doesn't sound right NRG, I'd definitely call ASAP.
I have never in 20 years of home ownership in this state and three others had my homeowner's insurance raised. Is this status quo in NC? Even in this state, there has been no increase in my HO insurance over eight years.
I received a letter a few months ago explaining how home improvements could modify valuation of property (probably because of the clue report and my home improvements noted there), but I have not received a modified bill.
I don't think insurance companies can raise a homeowner's rates without advance notification and with the option for a homeowner to opt out, kind of like health insurance increases. I don't get it. Can they automatically do that?
best,
toodie
I'm confused. I've never received a renewal that didn't include a price increase (in NC, VA or FL). In 2004 our home owners insurance (with State Farm) went from about $300 to about $700. The reason I was given was that State Farm had lost a lot of money in the stock market and had to replenish its reserves. I had the option to shop around or stick with State Farm. They always give you advanced notice.
Also, since they haven't raised your rates in 8 years I would double check that you are insuring the proper amount. Your home would likely be much more expensive to rebuild today than it was 8 years ago.
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