Home Owners Insurance Question (Dallas, Amarillo: appointed, real estate, good credit)

[dewlover]

I have lived in Texas since 1980 and bought the house I live in now in 1982 for $30,000. It will be paid off next year. My question is: How in the world can insurance companies charge what they do here in Texas? My bill this year is $2450. The housing market here (north of Amarillo) is not great-I might be able to resell my house for $60,000. I have made 2 claims for new roofs in the 25 years I've lived here. My friends in Ohio, California, Florida and Minnesota say our cost of insurance is outrageous! The company I've had all this time? Trinity Insurance from Unity Kemper.......They suck!!!!Thanks for listening! (I know.....every other state has higher taxes, etc....)

[bluedog12]

they say ca. is expensive.my homeowners insurance is $610 per year and full coverage auto for a 2004 p/u and a 2002 cavalier is $1280 annual and my property taxes are $1893 annual.sure we have state income tax.after my deductions i
paid $468 in state tax.sales tax in riverside county is 7.75%.before the big real estate boom i bought my 1560sq.ft house for $110,000 in a great neighborhood.y'all are getting your pockets picked big time.

[Guingirl]

Well when we lived in CA our insurance was 850.00 a year. That was 5k deductible, but honestly, no one ever used it in our area of Northern CA. I don't know anyone that ever made a claim. Since we have been in Texas, there are quite a few people I know that have had to have their roofs fixed.

I understand your frustration, but you couldn't even look at a mobile home in CA for 60K not to mention anything to put it on.

[momof2dfw]

You need to change companies. Unless you got a heck of a jewelry policy or something else that is high dollar being covered there is no way for a $60K home it can be that high. Double check your policy and see what they have the replacement value of your home listed at as it may well be you have a house that is valued at over $60K. You DO want to make sure that the replacement value is accurate for the current market. This is the amount of money it would take to build your home should it be destroyed based on the market today. If you have it too low and something happens you will never be able to get the house replaced so never lowball this figure. On the flip side don't have it WAY too high. But based on what your saying your annual rate is something is amiss. You either have some other items covered (jewelry, high dollar furniture, electronics, etc). Are you SURE that the amount is not for ALL of your items insured like home AND cars? If it is they are raping you but I find it hard to believe it can be that rate if you have only had two roof claims.

We have State Farm and have had two claims in the last 4 years and for a house that is a replacement value of $560,000 our previous annual rate in the Dallas metroplex was right at $2900. It has gone up w/ the renewal to about $3500. We have now switched to Farmers and it will save us a little over $100 a month.

You REALLY need to review your policy w/ your agent and double check to make sure as something is wrong w/ this picture or else you have the numbers mixed up.

[Trainwreck20]

Ditto to Momof2 - I had a $130k appraised value house and paid $800 year (no claims until just before I sold it and need a new roof ). That was with $250/$1000 deductibles, too ($250 for whatever part covers hail damage). Think it was through a company called Texas Select.

[KewGee]

Originally Posted by Trainwreck20

Ditto to Momof2 - I had a $130k appraised value house and paid $800 year (no claims until just before I sold it and need a new roof ). That was with $250/$1000 deductibles, too ($250 for whatever part covers hail damage). Think it was through a company called Texas Select.

I had Texas Select and they went under less than a year ago. I now have a policy with Farm Bureau and although my home is valued higher, I chose to insure it for only $75,000 as if it were destroyed, I will just downsize since my children are grown and gone. I'd rather do that and take the chance that no big claim will ever be made on it. I pay about $1,200 a year and that's high enough.

Farmer's Insurance was ridiculously high, and they had me rated as "within the city limits" which I wasn't. If they had me in the right "zone" or whatever it's called, I would have been bankrupt. I really never paid any attention to their error, but when I switched to Farm Bureau after Texas Select went under, it was brought to my attention. TX Select rated me "in town" as well so for "cheating", their rates were too high but not nearly as bad as Farmers.

I really like Farm Bureau; they are a great and reputable company and my insurance guy is a total prize, honest, efficient, and he "knows his stuff." I will not switch again.

Taxes and insurance are way too high in Texas, but there isn't much anyone can do about it if this is where they live. Paying no income tax just doesn't seem to even out with the high cost of living for Texas. Sure, there are higher priced places but for this part of the country, I'm really amazed at the totally outrageous costs.

Most definitely though, you must check on why your insurance is "through the roof." That is utterly ridiculous.

[Midway_FUBAR]

I agree with the others that your price seems way out of line with others that I have quoted in the panhandle area.

There are special circumstances (wind & hail) that drive rates in the panhandle higher than the state average but your's is much too high.

The replacement cost on your home should be in the neighborhood of $80 per foot if you are brick veneer or $70 per foot for frame construction. Add $5 per foot if you are pier and beam construction as the foundation cost is not normally added in to the figures. (Nothing that the policy covers is going to destory a cement slab...)

Most insurance companies are looking for two things in a client, good credit history and new construction. The new construction is less likely to have a claim and those with good credit histories are less likely to inflate a claim (that is the theory anyway...).

Best of luck and I hope that this helped!

Joshua

[donotfix]

best one i know of, good and cheep. extraco insurance svcs corp po box 6101 temple tx 76503 (254) 774-5500

[cdelena]

Keep in mind that the way insurance carriers reduce their liability in an area is to jack up rates to cut the number of policies. That is why there is a large difference in rates and it is important to shop several companies.

[loves2read]

the reason insurance is so high in TX is actually two-fold
1) TX does sit in tornado alley, is close to the Gulf Coast with its share of hurricanes from time to time, and has hail storms--which many states do not--all make it a state w/many liability claims (sometimes justified and sometimes not)--which mean that ins co do have to pay out more in TX and thus they have to set rates comprably...
Also keep in mind that insurance companies are big investors--when they make bad decisions on investments and their portfolios take a hit, they have to recoup that money someway--so that usually means a rate increase anyplace they can get away with it--car/home/private property/health/life--whatever...so they can keep their stockholders happy...

However--and this is part 2--in TX (can't speak for other states) we really have a crappy state insurance board--they are appointed by the govenor and are not required to have any background in insurance, construction, or finance--they might have years of experience working for an ins co (then where do yu think their allegiance might be?) --they can be as dumb or smart as luck has it...
just like our state utility board and we can see what a great job it is doing right now...

No one really holds the govenor accountable for having people on that board who might be more swayed by business interests than homeowner interests--(and I believe the last two govenors have had that perspective mainly)--those are not usually the choices that the press or citizens write into the papers about when there is an election...I believe the state board must approve rate increases for them to take effect...
I don't think they hold any sway over the ins companies who can be big contributors to anyone running for govenor or legislature in tx ...
until residents become more pro-active in their own interests and VOTE for responsible government, we can shop around but that puts all the burden on individuals and not on govt that should be looking out for citizens...
Just my opinion...