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Old 05-01-2023, 02:14 PM
 
55 posts, read 76,884 times
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My renewals came in and the premium has shot up ~50% with Allstate. I have no history of claims! How is this legal?
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Old 05-01-2023, 08:57 PM
 
Location: Austin, TX
1,780 posts, read 4,026,080 times
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Everything is legal in Texas, including price gouging!
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Old 05-01-2023, 09:39 PM
 
Location: Austin, TX
15,269 posts, read 35,630,016 times
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Shop around. Allstate is - in my experience, anyway - one of the worst for home or auto.
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Old 05-02-2023, 08:03 AM
 
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I agree that Allstate is one of the worst. Also, insurance companies routinely practice something called Price Optimization. Basically, long time customers are less likely to switch providers, because it's a hassle, people think they're getting the best rates for being loyal, etc. So insurance companies basically analyze the numbers and generate a tolerance threshold of how much they can get away with raising rates on those folks before they jump ship.

Shop around. We use Amica for home and auto and have been really happy with them. And we have had claims.
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Old 05-02-2023, 08:12 AM
 
216 posts, read 179,603 times
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Did your home appreciated 50%?
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Old 05-02-2023, 10:13 AM
 
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Not surprising. Hail exposure is getting worse for insurance companies. Add in the recent Ice storms, and catastrophe claims are causing the industry billions. Such extreme weather use to be confined to the Northern and Western sections of the states, but now it seems like we get one good hailstorm every spring now. In addition, there are people who refuse to replace their old roofs referring to instead wait until a storm so the insurance company has to pay for the replacement. At the end of the day, insurance is a business not a charity, so customers will bear the losses to maintain profit margins. My insurance carrier switched me over to a wind/hail percentage deductible from my previous flat $1000 deductible. It sucked but it wasn’t surprising.

I agree the OP should shop around but be aware of a common insurance industry trick. Get you with a low premium the first year, only to significantly increase the rates thereafter.
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Old 05-02-2023, 11:20 AM
 
Location: Austin, TX
15,269 posts, read 35,630,016 times
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Eh, Texas has always had one of the higher home insurance rates. The hail/wind damage is not new or worse than it used to be. Hurricanes have always been an issue. We had big ice storms back in the 90s and the 00s. For the most part, it is just inflation, I suspect, although yours sounds a bit extreme and you really should look around. The change from the flat deductible to the percentage is painful, but has become industry standard over the last 15-20 years.
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Old 05-02-2023, 11:51 AM
 
Location: Chicago, IL
1,343 posts, read 1,372,033 times
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If you're interested, here's a link to a recent 39-minute NPR story on the connection between climate change and home insurance price increases.

https://www.npr.org/2023/04/20/11711...urance-pricing
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Old 05-02-2023, 12:40 PM
 
55 posts, read 76,884 times
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Quote:
Originally Posted by karpo1 View Post
Did your home appreciated 50%?

well... the coverage limits increased by 5% this year. The crazy run up and inflation had already been factored in last year.
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Old 05-02-2023, 12:42 PM
 
55 posts, read 76,884 times
Reputation: 57
Quote:
Originally Posted by CarnivalGal View Post
I agree that Allstate is one of the worst. Also, insurance companies routinely practice something called Price Optimization. Basically, long time customers are less likely to switch providers, because it's a hassle, people think they're getting the best rates for being loyal, etc. So insurance companies basically analyze the numbers and generate a tolerance threshold of how much they can get away with raising rates on those folks before they jump ship.

Shop around. We use Amica for home and auto and have been really happy with them. And we have had claims.

Yeah, I've heard good things about Amica, will get quotes
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