Easy… if you pay off the loan, no insurance required!

Seriously though mine in NW Florida has gone up a lot every year waiting for the renewal bill in April. USAA I don’t think will pull out of FL due to the military presence here. I’m just happy to have a policy. Lots of folks I know have gotten letters such as replace your roof (20k+) in 30 days or no policy. Or hey sorry, XYZ company has left the state or just go kick rocks we’re dropping you after paying premiums for years with no claims. Leaving homeowners to scramble to get a policy. And at least in FL if your roof is 10+ years old you can just BOHICA

Ours on our Florida place is going up about 25% at the April renewal to $2,250. Did the same last year but that was after Hurricane Ian did a direct hit to the area.
ERJ 65% is a huge percentage assuming the current premium is already significant. I'd be shopping it for sure.
Ironically we are looking to sell and my biggest concern is potential buyers being able to find affordable insurance so we can close a deal.

We changed insurance companies a few years ago . They sent an inspector out to look it over first . He took pictures of the electrical panel , and strangely enough , all of the shutoff valves on the sinks and toilets .

Besides California and Florida, insurers are leaving South Carolina. In talking to insurance agents and underwriters it seems natural disasters are their biggest sources of loss. And it is not only the insurers but also their offshore reinsurers. Before I moved into my new home in 2020, my insurer wanted storm shutters made to Florida code installed and a written waiver that the insurer could spray my home with foam in the case of a forest fire (I live about 15-20 miles from the Francis Marion National Forest). I was also encouraged to install a whole house generator. More recently, the insurer suggested installing one of the automatic water shut off systems. And of course, premiums continue to go up at renewal time. I'd be curious to know what people who live away from water, forests, and wind prone areas pay for insurance.

quote:

Originally posted by selogic:
We changed insurance companies a few years ago . They sent an inspector out to look it over first . He took pictures of the electrical panel , and strangely enough , all of the shutoff valves on the sinks and toilets .

Electrical and plumbing leaks are big loss drivers. Fire with sub standard electrical and slow leaks with those shut off valves. My parents had a $5000+- claim from a faulty shutoff valve. Insurance company required all of them in the house replaced in order to renew coverage last year. House is only about 15 years old. Those shutoff valves fail at a high rate. Especially when you try to use them.

After our last increase notice , my wife called our Insurance Broker and had him check rates at other companies . He called back and said that his recommendation is that if you have insurance and you can afford it , keep it . Very few companies even writing policies in our area and those inspections are getting more detailed .

Here in Orlando I have seen people post on the local community boards that their premiums are more than doubling, from things like $2K per year to $5K per year.

I am not sure the average person is just supposed to go from paying $160 per month to over $400 per month? It's crazy.

Homeowner's insurance used to be something that was rarely used. Now it is where people turn to get a free roof or to fix minor water damage from a leaking pipe. Add in inflation in the trades and the cost of materials, you can see why rates are increasing. Also, it increasingly looks like cities allow housing developments in areas where the risks have increased. Why not? The cities don't bear the cost of the damage, but they get the revenue in the meantime. In my city, they are building 700 new homes in a plain that was underwater in 1957 and 1983. When that area floods, my whole city will be reclassified due to the massive claims, even though I live up on a hill.

quote:

Originally posted by Powers77:
ERJ 65% is a huge percentage assuming the current premium is already significant. I'd be shopping it for sure.

OK...for apples-to-apples comparison purposes, here is what is being insured:

Single-story "town house". My unit shares a common wall with my neighbor, so it's two units in one, which I would define more accurately as a Duplex. But for whatever reason, it is technically defined as a "Town House".

3 B/R; 2 Bath
Living Space - 1,601 sq. ft.
Attached 2-Car Garage - 400 sq. ft.
New Roof - April 2021

No claims. No damage. No ANYTHING that I would deem responsible for such an increase in yearly premium.

2024 Renewal Notice Cost - $2,736.00

The premium increases, for those eligible for renewal, reflect:

1. allowances for less policies (insurer cancelling policies) and so spreading the actuarial risk across policies that remain

2. increase cost of rebuilding (example: the original cost to build the house was $100K but now materials and labor costs are $300K to build the same house).

3. re-coup prior losses from disasters (fires, hurricanes, floods, etc)

4. general profit increases for salaries, etc.

Is this about right?