Also could simply be a company-wide mandate of no new policies, but you can still renew/extend current ones.

one safe place said:

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JAW3336 said:

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I agree, deductibles have been rising and if costs and claims don't subside(which costs obviously won't) then deductibles and premiums will rise and areas will be excluded completely.


I understand the appeal of coastal living but the risks are very high and eventually will be uninsurable.

I have a second home in the mountains and in a high fire risk area and it will be the same soon. uninsurable.

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I had a dentist for a tax client and he and I were discussing his beach house. He and his wife live in a very nice home near me but also had (might still have) an even nicer place at the beach. A lot of the discussion was about the ongoing maintenance on coastal properties and, of course, insurance. My thoughts were that at some point not even he would be able to afford the insurance if he could even get coverage.

My wife and I are about to sell a couple of properties and though I love the beach and though we will have the money, I told her we would be much better off renting a place for a month at $3,000 a week than buying a place. Plus, if you don't own it, you won't have a dozen family members wanting to use your beach house like was the case with the dentist!! lol

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Our house on the coast is our primary and we do not own a second home. The vast majority of homes around us are second homes. We are literally the only full-time residents on our street and within probably 15-20 other homes not on our street. We basically have our sliver of the hood to ourselves minus the regular lawn crews and local wildlife which is nice especially on weekdays.

The vast majority of our neighbors literally come to their second homes once per year and sometimes less than that. It continually blows my mind that these people are paying what they are paying in property tax on a second, non-homestead exempt home coupled with the insurance that comes with it. Must be some rich m'fers.

I guess in one regard when these homes become un-insurable it will be cheaper to have the home assuming we don't get hit by a tropical storm or hurricane that floods you out. Major dice rolling there though.

Quote:

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For context, we pay $931.00 for $5M in coverage.

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Daddgum. We have State Farm and they just jacked our premium on a $1M policy to $3K.

I am talking to an insurance broker on Friday.

Lots of rating factors for an umbrella.

# of cars, # of drivers, # of properties, # of acres, # of claims, # of youthful or senior drivers, boats, rv's, mc's etc

hindsight said:

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Quote:

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For context, we pay $931.00 for $5M in coverage.

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Daddgum. We have State Farm and they just jacked our premium on a $1M policy to $3K.

I am talking to an insurance broker on Friday.

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WOW. That sounds totally abnormal to me. The consensus I've always heard from brokers and my FA is that umbrella insurance is relatively cheap and that's been my experience. This feels like they are trying to get out of the game. Our last auto insurance provider did this. Jacked our insurance up to $5K per year. Broker told us they were simply trying to leave the market and gouge on their way out.

Not sure this is relevant/related, but we just recently got our policy and the price it was going to be on 12/30 if pushed through quick and the price it was going to be if we didn't push it through until after the first of the year was a 40% difference.

State Farm isn't looking to get out unless you are talking about Cali or Florida.

JAW3336 said:

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State Farm isn't looking to get out unless you are talking about Cali or Florida.

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Man, then State Farm is entirely uncompetitive in this space. Their rate is completely disproportional to what I'm paying with Progressive but maybe State Farm has way bigger claims than anyone else? I've had umbrella quotes from several companies over the years and it's always been <$1k. We were paying <$500 for $1M coverage before we upped to $5M coverage.

YouBet said:

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JAW3336 said:

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State Farm isn't looking to get out unless you are talking about Cali or Florida.

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Man, then State Farm is entirely uncompetitive in this space. Their rate is completely disproportional to what I'm paying with Progressive but maybe State Farm has way bigger claims than anyone else? I've had umbrella quotes from several companies over the years and it's always been <$1k. We were paying <$500 for $1M coverage before we upped to $5M coverage.

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Our $1M umbrella with State Farm went from $447 per year last year to $667 this year. I didn't like the increase but will probably stay put since home and auto stayed the same

You have no idea what the rating factors are for someone else's policy though.

JAW3336 said:

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You have no idea what the rating factors are for someone else's policy though.

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True, but a $2k difference on an umbrella policy? That seems extreme but what do I know.

hindsight said:

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Quote:

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For context, we pay $931.00 for $5M in coverage.

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Daddgum. We have State Farm and they just jacked our premium on a $1M policy to $3K.

I am talking to an insurance broker on Friday.

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I dropped my State Farm umbrella for one with Progressive last year. My premium had increased 4x in like 5 years (<$300 to >$800). Progressive was a little more than half what SF wanted for the same coverage ($450-ish). This was for a $1M umbrella.

I still have my auto and home with SF, and the broker who shopped my umbrella couldn't beat SF's rates for those policies. But they are not competitive with umbrella policies.

As a side noted my homeowners renews next month and it actually went down! Granted the decrease was <$100, but I'm considering that a win at this point.

TXTransplant said:

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hindsight said:

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Quote:

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For context, we pay $931.00 for $5M in coverage.

---

Daddgum. We have State Farm and they just jacked our premium on a $1M policy to $3K.

I am talking to an insurance broker on Friday.

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I dropped my State Farm umbrella for one with Progressive last year. My premium had increased 4x in like 5 years (<$300 to >$800). Progressive was a little more than half what SF wanted for the same coverage ($450-ish). This was for a $1M umbrella.

I still have my auto and home with SF, and the broker who shopped my umbrella couldn't beat SF's rates for those policies. But they are not competitive with umbrella policies.

As a side noted my homeowners renews next month and it actually went down! Granted the decrease was <$100, but I'm considering that a win at this point.

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Can't recall if I shared but in a dig on Progressive (who we have everything with right now) they preemptively told us our auto rates were decreasing this year and that they saved us some money. Great, I thought. I then get my renewal notice with the same message that they managed to save us some money.....it was $200 more than last year.

So, they just blatantly lied to me. Talked to my broker about it and he was baffled as well.

one safe place said:

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I had no idea getting coverage after a lapse in coverage was such a big deal but what do I know!

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I almost got burned by it. Switched to a different company. They sent an inspector who found something stupid and denied the policy. My old policy had been cancelled and I was almost at the 30 day mark. My previous agent said they could not cover it again had it been 30 days, despite the fact that I'd been with them for several years.

The original insurer covered the house and Ive switched twice since then with no issues. Now if I switch, I tell them to not cancel until inspection is done. Then they back date the cancellation. Dumbass inspector!

So, I've changed house insurance companies multiple times over the years without having to get an inspection.

Is that just luck of the draw? I haven't heard of that until this thread. It makes sense but I've never had to do it when switching.