Question about Homeowners insurance rates

[doc03]

Has your insurance rates gone up a lot this year? I have carried my insurance from a company for 5 years and every year my replacement costs for my home have gone up maybe 5-10%. This year the replacement cost increased over 50% for my home and personal property. I called the company no-help line to inquire about it and they say the questionnaire that I filled out was the basis for the increase in value. They said they send out the questionnaire every 5 years to determine your homes value. I explained the only change I have made was to change from fuel oil heat to electric and the main reason I did so was 4 years ago my old furnace malfunctioned and it caused me a lot of headaches and cost them $7000 for the clean up. So, by upgrading to electric I have made it much less likely they would get a claim again. Her answer was that could be why the value increased, I told her the heating system cost less than $5000, how can that raise the value of my home over $60000 and my personal property $25000. Then she goes on telling me that they determine replacement costs by labor and material costs in your area. I explained I bought this house 11 years ago and doubt I could get back what I paid for it since it is a very depressed area. Finally she hit on my suspicions and started telling me about how replacement cost in the hurricane Katrina area was much more than they should have been because of labor and material shortages. I wonder if anyone else has experienced that problem this year.

[newcriminal]

1. No mine has stayed the same

even tho prices in this area have gone through the roof.



I have State Farm

[Nickster]

2. It's gone up, but not terribly. I'm in Illinois, so I'm not getting the

squeeze put on me like you are. I'd say my annual rate went up about 26%.

[doc03]

3. Well my premium went up about 30% but I

just can't comprehend the rebuilding costs for my house increasing 50% in one year and they increased the value for personnel property by the same percentage. I get my car and homeowners from the same company so I guess I will wait until my car insurance comes do and shop around for a better deal.

[GOPisEvil]

4. The companies are using a new method to calculate rebuilding costs.

And, therefore, raised policy limits which raises premiums.

[doc03]

5. I really don't understand that, it cost x amount for

labor and y amount for material, costs are costs aren't they? The only lame excuse I got from them is they determine labor and material costs in your area and they found in the hurricane Katrina area there was a labor shortage. Well of course there was a labor shortage there with thousands of homes destroyed. This is SE Ohio (Appalachia) it is a depressed area labor costs are the lowest in the nation and there certainly is no shortage, we don't have jobs here Americans won't do.

[GOPisEvil]

6. I don't completely get it either.

My insurance company used information provided by Marshall & Swift/Boeckh. Apparently, they're the new standard for construction and consumer costs. What a lot of people fail to realize is the increased costs due to higher code standards.

[doc03]

7. I suppose you are right, but how did my personnel property

contents increase by the same percentage? Apparently they use the same standard for each. Hey what can we do this is life under a Fascist government. The oil and insurance companies get rich and we're screwed.

[GOPisEvil]

8. Typically your personal property is insured at % of dwelling limit.

If you only have actual cash value, then typically, your personal property is 50% of dwelling. If you have replacement cost value, then typically that is 60% of dwelling.

Edit - spelling, and boy that's a lot of "typically"s for one post.

And, another edit, yes, I work in insurance. :)

[doc03]

9. That looks about right I have replacement cost

value. So you work in insurance so that makes you the screwer and I is the screwee as Flip Wilson would say.

[GOPisEvil]

10. Well, I work in subrogation, so I could end up being your best friend.

;)

I'm also a customer of insurance, so I'm on the receiving end as well. :hurts:

[Broken_Hero]

11. no

my wife and I's have stayed the same...we got increases in property taxes, but not insurance...:) But, we are just into our third year of home owner ship, and we both have a great history with our insurance comp...if that means anything.