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March 2018: There was a claim, so I am okay with the increase from $650 to $794.
Since March 2018, there is no more claim, the only change is roof replacement in November 2018 (actually new roof should reduce premium a little, but I think that is insignificant factor anyway).
I don't understand why it increases from $794 to $994, I was actually expecting the premium to go down a little bit from $794, since there is no claim. I thought Oct 2018 - Oct 2019 premium $794 is temporary increase.
Not flood area, not hurricane area, nothing... No any disaster event during the past year.
It is kinda unacceptable to me: it has increased from $650 to $995 (more than 53% increase) over only two years period.
March 2018: There was a claim, so I am okay with the increase from $650 to $794.
Since March 2018, there is no more claim, the only change is roof replacement in November 2018 (actually new roof should reduce premium a little, but I think that is insignificant factor anyway).
I don't understand why it increases from $794 to $994, I was actually expecting the premium to go down a little bit from $794, since there is no claim. I thought Oct 2018 - Oct 2019 premium $794 is temporary increase.
Not flood area, not hurricane area, nothing... No any disaster event during the past year.
It is kinda unacceptable to me: it has increased from $650 to $995 (more than 53% increase) over only two years period.
Well, consider that what the insurance carrier has to pay a contractor to replace your house, in materials and labor, increases every year. The cost to replace the damaged contents also tends to rise. For example: In 2004 it might have cost the carrier's contractor $500 to repair smoke damage. Three years later the exact same repair might cost $800 to do. There could be changes or re-evaluations of the local hazards the property could be at risk from too. After every flood, flood zones get revisited. Fire hazards change over time. Structures and the mechanicals in the house are constantly aging (even with a new roof).
If the new premium is so unacceptable to you, switch carriers. Just be sure the coverage is really comparable.
Last edited by Parnassia; 08-14-2019 at 11:12 PM..
They just told me the primary two reasons for the increase:
1) It costs slightly more to rebuild the house (such as increased labor cost). But how much labor cost can increase within one year?
2) They paid out more than what they collected from previous year in MY AREA, and they got state approval to increase the premium.
Materials and labor costs continue to increase.
A lot of the P&C carriers had higher than expected payouts in 2018 due to increased CAT events (wildfires, etc..), so they may be looking to pull more rate.
A lot of the P&C carriers had higher than expected payouts in 2018 due to increased CAT events (wildfires, etc..), so they may be looking to pull more rate.
I understand for slightly increase, but not much. How much can material/labor cost increase during one single year? I totally understand that CAT events can cause a lot of increase, BUT there is no such events in my area (Virginia, nearby DC metro).
The only thing you can do is shop around. Wondering why the increase won't solve much. This particular company may just not be good at being an insurance company.
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