Home insurance far outpacing inflation

[Tempest332]

Going over prior bills, ditching paper.  in 1998 my homeowners insurance was $96/year, last year it was $610/year with no claims ever.

In a Cluster home/Condo, so this insurance covers "drywall in".  Not only Hartford doing this my prior company was a bit higher before switching, waiting my renewal notice which is due any day.  Add this last years "inflation" & general increases.     

Installment fees, these are charged monthly, with Hartford (I imagine many other companies) even if you pay in full.  

[SpringIsHereSoHappy]

(3/30/24) @nctarheel  and @Tempest332 , I saw on my Google News Feed that Florida is ALLOWING the "absence" of FLOOD INSURANCE. Yikes!!! Wonder what happens IF House "floods"...  👵

[GailL1]

@SpringIsHereSoHappy 

States don’t normally have any laws stating that one must cover their dwelling for a disaster - flood or otherwise - it is the mortgage company that places the REQUIREMENT and if the homeowner doesn’t maintain coverage for the length of the mortgage, the mortgage company forces the homeowner to accept the policy that is found for them by the mortgage holder.

Once the mortgage holder is out of the picture, the homeowner can do as they please with the liability falling directly on their shoulders - Of course, that is not a wise move especially in Florida.

FEMA just announced that they are removing the 25% discount in October 2024 for those in Lee County Florida who have Flood Insurance through them - that’s gonna hit the pocketbook hard for many.  But hey, it is Florida and a costal location for many people.

[SpringIsHereSoHappy]

(3/30/24) @GailL1 , in order for ANY business to "operate" in Florida, there will be some "say" from the State whomever makes the rules. What the article had said, was that by "allowing" houses to be SOLD without FLOOD INSURANCE - this would probably help move the sales.  👵

[GailL1]

Of course it would help sales BUT what mortgage company is gonna finance a place without ample coverage of their investment?  So it would be a rule without any teeth.

With FEMA dropping the discount premium for flood insurance in Florida, there maybe fewer people able to afford it.  

I am pretty sure that FEMA Flood Insurance is the only type available in many, maybe all, locations in Florida.  The state of Florida also has to be a reinsurer because so many insurance companies have left the Sunshine State.

Have you checked on the cost of rental insurance in FL compared to where you are now ?  Is it much higher for the same type coverage?  Do you get flood insurance with a rental unit - especially if it is a 1st floor unit.

[SpringIsHereSoHappy]

(3/30/24) @GailL1 , I made this comment to @Tempest332 and @nctarheel just to chat about the Google News Article with them, NOT to research anything. I DO NOT care who has Flood Insurance or not. 👵

[Tempest332]

They don't pay out... There is also something called "Accidental water backup" insurance as well.  My HOA actually covered me in 2006, when my homeowners didn't. 

[nctarheel]

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@Tempest332 wrote:

Going over prior bills, ditching paper.  in 1998 my homeowners insurance was $96/year, last year it was $610/year with no claims ever.

Installment fees, these are charged monthly, with Hartford (I imagine many other companies) even if you pay in full. 

Well, first of all, one cannot compare costs for insurance from almost thirty years ago to today's prices.

Why????

Because the value of your home, after thirty years, should be a multiple of what it was in 1998.

Because, due to climate change, damaging weather has become much more frequent.

Because, due to economic conditions, there are less insurers now than 30 years ago, thus less competition.

Because your credit may have changed, over the years. Part of what they base premiums on is your credit scores.

Other than those reasons(and I am sure I left out other reasons), your company doesn't sound like the best choice to me. The company I am with does charge a fee to pay in installments, but, to be fair, if you pay in full, they give you a sizable credit.

You may want to investigate other companies.

[Tempest332]

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@nctarheel wrote:

Because your credit may have changed, over the years. Part of what they base premiums on is your credit scores.

Other than those reasons(and I am sure I left out other reasons), your company doesn't sound like the best choice to me. The company I am with does charge a fee to pay in installments, but, to be fair, if you pay in full, they give you a sizable credit.

You may want to investigate other companies.

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I probably will have to next year.   The credit score thing is a farce, so is not making claims. 

[Tempest332]

Far from a "multiple" about a 30-50% increase value on my house since '98. I don't live in Califlatexaz (or any other desirable area).

Got my renewal, about $30/yr ...reasonable, it isn't just Hartford, most of the exponential increases came from my previous company. 

Started post Katrina. 

No credit in paying in full, credit score is remained the same throughout.