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Main Forums => The Roundtable => Topic started by: MillCreek on May 10, 2022, 11:10:38 AM

Title: Holy moly, such an increase in the homeowners' insurance
Post by: MillCreek on May 10, 2022, 11:10:38 AM
I received notice that my homeowners' insurance would be going up from $ 1950 per year to $ 3400 per year. The reasons cited were increased fire exposure and credit score data.  Washington state recently outlawed insurance companies using credit score in their underwriting.  There is data showing that people with high credit scores tend to have lower rates of property/liability claims.  The state thought that was discriminatory so insurance companies can no longer use credit scores in setting a premium.  The insurance companies responded by a global rate increase for most personal lines of insurance.  In regards to the fire exposure, our development and most of the houses in this area are surrounded by cedar, Doug fir, western hemlock and red alder trees, and wildfires have certainly picked up in the West over the past few years.
Title: Re: Holy moly, such an increase in the homeowners' insurance
Post by: dogmush on May 10, 2022, 11:15:30 AM
Ouch.  Yeah it seems like everyone just gets the rates of low credit score folks now.  Equity!!
Title: Re: Holy moly, such an increase in the homeowners' insurance
Post by: Ben on May 10, 2022, 12:06:36 PM
Being in a neighboring wildfire state and having a high credit score, your post has made me both sad and anxious. I did all my renewals a few of months ago and the house/property went up $120 to $1075 (I have super duper coverage with a $3mil umbrella, but Idaho insurance is really cheap). That doesn't sound like a credit score "adjustment". Now I'm worried about my next renewal in FEB23.
Title: Re: Holy moly, such an increase in the homeowners' insurance
Post by: K Frame on May 10, 2022, 12:23:54 PM
Yikes, that's quite the hike.

but, I'm sure that every homeowner in Washington is more than happy that the state legislature "leveled the playing field" for everyone...

Waiting for the legislators to start screaming greedy corporate greed in 3, 2, 1....
Title: Re: Holy moly, such an increase in the homeowners' insurance
Post by: MillCreek on May 10, 2022, 12:26:00 PM
I can hardly wait to see the renewal rates for our auto coverage this year, since it will also be impacted by the credit score issue.
Title: Re: Holy moly, such an increase in the homeowners' insurance
Post by: K Frame on May 10, 2022, 12:28:21 PM
I'm really surprised that Virginia's communists... er.... Democrats didn't try to pass that crap during the two years they were in charge of the state.

I'm not sure how much I pay Erie for homeowner's insurance right now, but I think it's still under $1,000.
Title: Re: Holy moly, such an increase in the homeowners' insurance
Post by: Ben on May 10, 2022, 01:34:01 PM
Washington state recently outlawed insurance companies using credit score in their underwriting.  There is data showing that people with high credit scores tend to have lower rates of property/liability claims.  The state thought that was discriminatory so insurance companies can no longer use credit scores in setting a premium. 

So wait, rereading the OP, this is WA state only? I thought I read some time ago something about not using credit scores nationally - either through legislation or the insurance companies were just going to stop using it themselves. Am I confused again?
Title: Re: Holy moly, such an increase in the homeowners' insurance
Post by: MillCreek on May 10, 2022, 02:06:09 PM
I know of the credit score prohibition in Washington state; I don't know if other states have adopted this nor have I heard of any Federal prohibition. 

https://www.insurance.wa.gov/news/kreidler-adopts-rule-temporarily-banning-credit-scoring-proposes-rule-increase-transparency
Title: Re: Holy moly, such an increase in the homeowners' insurance
Post by: Jim147 on May 10, 2022, 02:17:54 PM
Maybe the insurance company is trying to make up the losses in some of the mostly peaceful cities.
Title: Re: Holy moly, such an increase in the homeowners' insurance
Post by: sumpnz on May 10, 2022, 04:05:19 PM
Our insurance is going down marginally, in spite of the large increase in replacement costs due to the booming property market.  Apparently we got our no claims bonus back.
Title: Re: Holy moly, such an increase in the homeowners' insurance
Post by: charby on May 10, 2022, 04:29:02 PM
2 big derechos in and a f*ck ton of tornadoes in 20 and 21 is probably going to jack the rates in Iowa too.
Title: Re: Holy moly, such an increase in the homeowners' insurance
Post by: HankB on May 10, 2022, 04:41:15 PM
Homes were reappraised in the greater Austin, TX area, with an average increase just over 50%. This bodes ill for both taxes and insurance.  =(
Title: Re: Holy moly, such an increase in the homeowners' insurance
Post by: Ben on May 10, 2022, 04:49:31 PM
Homes were reappraised in the greater Austin, TX area, with an average increase just over 50%. This bodes ill for both taxes and insurance.  =(

After I posted above, I dug into my old statements, and that's the reason mine has been going up. Real estate prices are ridiculous here right now and I saw my home value on the insurance statement was jumping $100K/yr.

It kind of evens out for me as the state has been making some fairly hefty cuts to property tax rates because of the crazy real estate prices.
Title: Re: Holy moly, such an increase in the homeowners' insurance
Post by: K Frame on May 10, 2022, 05:12:35 PM
OK, my homeowner's insurance was $826 last year, and that's what's being figured for this year, although that will probably creep up based on what I'm hearing from a lot of people.

A couple of weeks ago I did fish around to see what GEICO homeowners would cost me. I got GEICO car insurance after Erie's insurance rates went up in 2015 or 2016 pretty much without provocation and without explanation. I'm talking nearly 40% increase over two years. I tolerated the first one, but the second one is when I told them to FOAD.

Anyway, when I did a price check GEICO would cost me just shy of $1,500 a year for what I'm paying $826 a year for right now.
Title: Re: Holy moly, such an increase in the homeowners' insurance
Post by: Kingcreek on May 10, 2022, 06:57:42 PM
Cost of roofing and building material is still sky high. Our is going up and our state still allows credit score in the formula. Our credit score is excellent and insurance went down 1/3 when they started it here.
I’m waiting on replacement of a hail damaged roof. 1st claim in over 20 years. Estimate is $26k
Title: Re: Holy moly, such an increase in the homeowners' insurance
Post by: Ben on May 10, 2022, 07:03:57 PM
1st claim in over 20 years. Estimate is $26k

Slight tangent, but what I hate most about paying for all my insurance is that in 44 years of carrying it, I have never filed a single claim. By now they should be paying ME at renewal time for all the profit they made investing my money, instead of me continuing to pay them.
Title: Re: Holy moly, such an increase in the homeowners' insurance
Post by: Boomhauer on May 10, 2022, 07:58:46 PM
With the cost of building materials I had to greatly increase my coverage.
Title: Re: Holy moly, such an increase in the homeowners' insurance
Post by: sumpnz on May 10, 2022, 08:48:16 PM
Chatted with the gal at the agents office we usually deal with and she said for our area, and not a super fancy house, replacement construction costs were around $270/sf.
Title: Re: Holy moly, such an increase in the homeowners' insurance
Post by: Fly320s on May 10, 2022, 09:01:11 PM
Being in a neighboring wildfire state and having a high credit score, your post has made me both sad and anxious. I did all my renewals a few of months ago and the house/property went up $120 to $1075 (I have super duper coverage with a $3mil umbrella, but Idaho insurance is really cheap). That doesn't sound like a credit score "adjustment". Now I'm worried about my next renewal in FEB23.

Idaho isn't that stupid.  You'll be fine.
Title: Re: Holy moly, such an increase in the homeowners' insurance
Post by: WLJ on May 10, 2022, 10:03:22 PM
Putin's fault
Title: Re: Holy moly, such an increase in the homeowners' insurance
Post by: K Frame on May 11, 2022, 05:38:03 AM
Cost of roofing and building material is still sky high. Our is going up and our state still allows credit score in the formula. Our credit score is excellent and insurance went down 1/3 when they started it here.
I’m waiting on replacement of a hail damaged roof. 1st claim in over 20 years. Estimate is $26k

YIKES! How large is your roof?

I had my roof replaced in 2019. Had to, it was falling apart. I have a simple 10-12 square roof, no dormers, no valleys, and only 2 vent stack penetrations and it cost me a bit over $5,000 for the quote I accepted. A couple were over $2,000 more than that.

That's here in Washington, DC, metro. I don't even want to know what it would be today.
Title: Re: Holy moly, such an increase in the homeowners' insurance
Post by: MillCreek on May 11, 2022, 07:57:31 AM
Safeco has clearly lost money on my homeowners': A $ 26,000 claim when the washing machine overflowed all night and flooded the ground floor, and a $ 70,000 claim on this house when the neighbor's tree fell on it.
Title: Re: Holy moly, such an increase in the homeowners' insurance
Post by: dogmush on May 11, 2022, 08:14:49 AM
YIKES! How large is your roof?

I had my roof replaced in 2019. Had to, it was falling apart. I have a simple 10-12 square roof, no dormers, no valleys, and only 2 vent stack penetrations and it cost me a bit over $5,000 for the quote I accepted. A couple were over $2,000 more than that.

That's here in Washington, DC, metro. I don't even want to know what it would be today.

My roof was 22k in summer of 2020 with a bunch of wood included.  My neighbor (pretty much same house) is getting his roof done this week, just paper and shingles, no extra wood, and non dimensional shingles is 30k.
Title: Re: Holy moly, such an increase in the homeowners' insurance
Post by: Lennyjoe on May 11, 2022, 08:39:54 AM
Yea we had Allstate and my rating went from a 4 to an 8b here in Ohio which drove my homeowners insurance from $1400 annual to $3780.  We realized that when our mortgage payment went up $600 last month.  Not sure if credit rating made a difference because in in the high 700’s.

Needless to say, we shopped around ended going with the Lemu Emu folks from Liberty Mutual.  Made sure we had acceptable coverages and a couple add ins for pool and such so we’re good to go now.
Title: Re: Holy moly, such an increase in the homeowners' insurance
Post by: Kingcreek on May 11, 2022, 08:53:49 AM
YIKES! How large is your roof?

I had my roof replaced in 2019. Had to, it was falling apart. I have a simple 10-12 square roof, no dormers, no valleys, and only 2 vent stack penetrations and it cost me a bit over $5,000 for the quote I accepted. A couple were over $2,000 more than that.

That's here in Washington, DC, metro. I don't even want to know what it would be today.
43 square incl 2 dormers, roofed porch with a wrap 52’ x8’, several ridge and valleys, and the attached garage.
Title: Re: Holy moly, such an increase in the homeowners' insurance
Post by: K Frame on May 11, 2022, 09:02:26 AM
43 square incl 2 dormers, roofed porch with a wrap 52’ x8’, several ridge and valleys, and the attached garage.

OK, that makes a lot more sense, then. That's a big roof with a lot of angles.
Title: Re: Holy moly, such an increase in the homeowners' insurance
Post by: Cliffh on May 14, 2022, 10:18:09 PM
.

Never mind.
Title: Re: Holy moly, such an increase in the homeowners' insurance
Post by: charby on May 15, 2022, 10:10:16 AM
Another derecho with a really rare haboob in NW IA the other day, more widespread property damage. Might be a hold my beer when setting home insurance rates for 2023.