Yikes! Beware of premium hike to homeowners insurance.
- Thread starter Cosmos
- Start date
Maybe you can confirm this, when I was shopping for homeowners a while back (before the pandemic) an agent told me that about 75% of people that experience a major loss that forces them to leave the home don't come back to the home because the rebuilding process takes too long. It is easier to buy and move into a different home rather than wait for 6 months to a year to rebuild.
That is most likely true - claims get processed slowly and the rebuilding process takes time but there is also a psychological effect - if it was a house fire for example the trauma of that event even if you were not home at the time may make you unwilling to return to the location where is occurred.
About to start shopping around. Had a water damage claim w State Farm that’s been a nightmare. Damage occurred in February. Work wasn’t done til july. Final check is currently in the mail. We’ve had 3 different adjusters and the final one has taken 3 different 2 week vacations. Original adjuster said it was 10k in damage and we could live in the house while 100% of the floors were redone. Final number ended up over 40.
I have Erie for home and auto. Last year I went to USAA for a quote. They could not beat Erie, which amazed the USAA agent. (She said that had never happened to her before.) The few claims I have had were handled efficiently without hassle. Maybe they are affordable because they don't spend millions on advertising.
Did you end up getting approval for alternate housing?
I ended up being in a hotel from Feb 2 until May 12. And my adjuster didn't care where, so they payed for my hotel for 3 weeks in Arizona and 1 week in Vermont.
I was ready to move back in though!
i also think a lot of people take that opportunity to upgrade their home and then sell it a premium value as all new stuff inside. I know the people next to me had a fire in their house and were out of it from February until mid December. They took the insurance money, used it plus a little of their own to do some upgrades and then sold it at way more than they paid for it because the inside was completely renovated.
A lot depends on the area. If it’s in an area with a large housing market and many options, you’re probably correct. But smaller towns or rural areas, people usually rebuild.
Most companies will likely see premium increases for the next couple of years since most took no increases or took decreases last year during Covid. That gave policyholders a break last year, but put some companies in a hole that they have to dig out of. Most companies won’t take all the rate they need at once, so they will take some each year.
We had a hail storm roll thru almost 10 years ago now. State Farm was thee worst to deal with in our neighborhood(Those who had State Farm had problems, those who had All State and Eire has no issues). I was a loyal State Farm customer for 30+ years. The claims adjuster was an arsehole that was in over his head, my agent just added to the arseholeness of the whole ordeal, something changed with State Farm because my previous SF agent before moving to State College always had my back. The agent I had here just kept wanting me to spend more and more money on policies. I should have know. Needless to say, in hindsight I should have kept fighting for the right dollar amount. The claims adjuster started hiring so called "consultants" they were saying things weren't damaged when they were. Needless to say I fired State Farm and now shop around. I am with Progressive now because they were the best deal at the time. I am no longer loyal to any insurance company. A better deal comes along then I will switch from Progressive, haven't had any claims with them yet.
We did but ended up staying with family instead as it was just easier with a dog and a pregnant wife. There was supposed to be a certain amount we’d get for staying with family since it saved State Farm money but when push came to shove they required me show a receipt for what we paid my in-laws and provide their social security info so that income tax would be collected and we just said f it because we just wanted the claim to be done with.
I am right there with you, have had Erie for both for decades. I shop the policies every few years, and nothing has ever come close. Have had a few collision and comp claims over the years and was a breeze. In 2020 had first ever homeowner claim, was near $20k, 2021 renewal was a 1% increase. I am good.....
When is the last time building costs reduced anything even noticeable let alone drastic?
My experience with Erie was the opposite. I pay less for 2 vehicles and my house with AllState than I was paying for just my 2 vehicles with Erie. And for upgraded coverage with AllState.
I haven't really heard anybody talk about the actual agent. Lot of people referring to the insurance company
The quality of your insurance agent is of the utmost importance.
A good agent first makes sure that you are insured adequately and properly. Then, at the time of a claim they help you with any issues that arise throughout the process.
Almost every single issue that you ever hear of a complaint about an insurance company is almost exclusively due to poor communication on one side or both sides. Sometimes it's the client that is terrible at communicating or unwilling to hear/listen and other times it's the insurance company and their claims reps that don't explain things well or are poor communicators in many ways.
The best way to deal with this is to have a good agent that can play referee and in some cases actually fight for the homeowner when necessary. Other times, the agent can clarify and defuse situations where the homeowner doesn't understand why something isn't covered or isn't working out the way they anticipated. And sometimes it claims adjuster needs a kick in the ass or to be pushed to look outside the box a bit
Like I said, in almost every situation a good agent makes all the difference in the world
Lastly companies like State farm Allstate etc are gargantuan companies that almost exclusively rely on name recognition via massive advertising campaigns.
That name recognition blindly provides a large level of comfort for a great many people when in actuality these companies are average at best when it comes to dealing with claims.
So, your best bet is to find a good independent insurance agent and hook your wagon to the best one you find. Many times, word of mouth is the best way to find one. And I probably wouldn't go to the massive agencies. Find a good, smaller agent even the agency owner.
This advice is coming from an agent who has been on both sides........... I worked 10 years for a direct writer such as the companies I talked about above and also on the independent side for 15.
I can tell you unequivocally that the independent side is a much better situation for most people..... But again, not all agents are created equal.
The quality of your insurance agent is of the utmost importance.
A good agent first makes sure that you are insured adequately and properly. Then, at the time of a claim they help you with any issues that arise throughout the process.
Almost every single issue that you ever hear of a complaint about an insurance company is almost exclusively due to poor communication on one side or both sides. Sometimes it's the client that is terrible at communicating or unwilling to hear/listen and other times it's the insurance company and their claims reps that don't explain things well or are poor communicators in many ways.
The best way to deal with this is to have a good agent that can play referee and in some cases actually fight for the homeowner when necessary. Other times, the agent can clarify and defuse situations where the homeowner doesn't understand why something isn't covered or isn't working out the way they anticipated. And sometimes it claims adjuster needs a kick in the ass or to be pushed to look outside the box a bit
Like I said, in almost every situation a good agent makes all the difference in the world
Lastly companies like State farm Allstate etc are gargantuan companies that almost exclusively rely on name recognition via massive advertising campaigns.
That name recognition blindly provides a large level of comfort for a great many people when in actuality these companies are average at best when it comes to dealing with claims.
So, your best bet is to find a good independent insurance agent and hook your wagon to the best one you find. Many times, word of mouth is the best way to find one. And I probably wouldn't go to the massive agencies. Find a good, smaller agent even the agency owner.
This advice is coming from an agent who has been on both sides........... I worked 10 years for a direct writer such as the companies I talked about above and also on the independent side for 15.
I can tell you unequivocally that the independent side is a much better situation for most people..... But again, not all agents are created equal.
They treat long-term customers like crap and don't care. I was with Nationwide for years and rates just went through the roof for home and auto. I looked around and found rates at half the price. Called and they said that they could not match it. Switched to Geico (their homeowners is through other providers) and was there for 5 years. Nationwide continues to want me back through letters emails etc. Geico rates went up fast and got quote from Liberty Mutual that was far lower than Geico. Called Geico and they did not care and said that they could not match the rate or even get close. Within a month I was getting calls and emails from GEICO with rates comparable to the Liberty Mutual ones. It is almost time to switch again. Dumb business practices but it must work due to people not switching or looking around. So maybe not so dumb.
In the last 12 years, I've been with Auto-Owners, Safeco, Travelers, State Farm, Geico, and Travelers (2). I'll play their silly games, switch every couple of years to get lower rates after seemingly automatic 6 mo and annual increases. Every time I change it seems like I get a 10 to 15% reduction in my auto/home/umb rates. Without going back and checking I'd guess that my auto/home/umb total today is the same as it was 10-12 years ago, so I can't complain about that.
You do realize that all insurance policies are not the same, right? Do you only drive the cheapest car? Do you only buy the cheapest furniture?
F that noise. I’m not going to jump around like that unless I ever face an increase that is just too much. Otherwise not worth the hassle.
Not to be political at all but so are gas prices, natural gas, food etc etc etc. Even the dollar store is no longer a dollar.
Lumber is one of the few things that did come down recently..I sell aluminum products and that keeps increasing almost every day.
No rate hike this time around for me (Erie).
I've been with Erie for 2 years now after spending my whole life with State Farm. They couldn't (wouldn't?) come close to matching Erie's rates and coverages.
I've been with Erie for 2 years now after spending my whole life with State Farm. They couldn't (wouldn't?) come close to matching Erie's rates and coverages.
Reading through this thread, it seems apparent that insurance companies screw with some people and raise their rates every year while others leave their customers alone and only increase rates if absolutely needed.
Before switching insurers you have to know what you are doing or have a good agent. I had clients who were being ripped off by one of the big auto carriers with good rates for the "same policy coverage". The carrier sold them high liability coverage but changed their uninsured motorist coverage to the minimum, even though they asked for identical quotes. They did not realize it until they were hit and severely injured by someone who was uninsured. If they had kept their old policy they would have been covered up to $500,000, but instead, they had $0 covering them from such a situation. When changing policies, apples must be compared to apples. Typically, you have little recourse against the insurer in such situations because the #'s are clearly written there to see before you sign. Everyone with assets should consider high liability and uninsured/underinsured motorist coverage and umbrella policies. They do not cost too much considering the alternative. When I lived in the south, half the people seemed to be uninsured and about half of the rest had minimum policies.
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