Home Insurance - 29% Premium Increase from Last Year? (Fairfax: homeowners insurance, condo)

[capitalhockey]

Hello,

I just rec'd my renewal invoice for home insurance policy. It went up 29% from last year. I asked the agent why. She told me that the dwelling coverage increased with home appreciation. I told her to keep the dwelling at the same level and give me a quote for comparison (apple to apple). The revised premium was still 20% increase from last year with the same coverage in place.

I asked her why is there still a 20% increase for the same coverage. She apologized and said she can't control the rates....those are the numbers that came out. So I have either accept it or shop for another company.

FYI - I have been with the same company (Erie) for last 3 years....no claims filed on my home policy....clean record. Even the Fairfax County tax assessment for my home went down (-2%).

Has anyone experienced this with their home insurance company? What is the reason for this? Is this legal?

[FCNova]

I doubt it's illegal but you should definitely get some other quotes. 20% increase for the exact same coverage seems very excessive.

[spencgr]

Originally Posted by capitalhockey

FYI - I have been with the same company (Erie) for last 3 years....

Out of curiosity (as I have never heard of them), why did you select Erie? Were they the cheapest? I wonder if this might be a bait and switch sort of thing. Reel you in at a cheap rate, and the raise it tremendously.

[capitalhockey]

Anyone has a good company to recommend? I would like to do some comparison shopping.

With the harsh winter, I was wondering if my premium increased to compensate for all the other claims that was filed this past year by other customers.

[FCNova]

Who is your car insurance with? I'd start with them because they may give you a multiple policy discount. I'm with State Farm. I think I pay around $600-700 a year for 450k or so in coverage.

[airjay75]

I will say I also had a pretty big premium jump this year - similar to you, about 20%. I shopped around, and almost every other insurer wanted even more than my renewal policy. Every agent seemed to blame the premium increases on Hurricane Sandy. My insurer is Homesite FWIW. I must have gotten at least 10 to 15 other quotes - all were significantly higher. Some got close if I bundled my auto and umbrella insurance with them, but still no one beat them.

[Forehead]

We have our condo insurance with the same company at our auto insurance. It didn't go up this past year, but jumped two years ago even though no claims were made. The explanation I got was that claims went up in general across the industry (Hurricane Sandy, other disasters) and that unfortunately, it affects everyone.

[tysonsengineer]

I blame obamacare

[Ben 'n Jen]

Honest answer would be "because we can"...but they're not going to say that. They want you to believe they're doing you a favor by insuring you.

Mandatory insurance is the biggest fleecing of a population since Julius Caesar.

Legislation that requires a person to give money to a private corporation should be unconstitutional.

[airjay75]

Originally Posted by Ben 'n Jen

Legislation that requires a person to give money to a private corporation should be unconstitutional.

Huh? There is no law requiring you to have homeowners insurance. It is the lender who loans you the money to buy the house that requires homeowners insurance. If you own your home free and clear, you are more than welcome to cancel your homeowners insurance.