Rising home insurance costs: can anything be done?

[PauletteGoddard]

Oh, I know about raising the deductible, keeping functioning smoke detectors in the house and all that.

I'm irked that my insurance rate is going up 7% this year. No claims have ever been made, and we have "an insurance score discount" whatever that means.

I plan to have my overall expenditures decrease by 10% this year, and the insurance going up by 7% isn't helping.

Question for homeowners: did your home insurance go up by at least 7% within the last twelve months for no apparent reason (no claim, no severe drop in creditworthiness)?

[sweeps]

You could try switching insurance companies. I'm no longer in good hands, if you catch my drift, and saved about 40% for the exact same coverage.

[PauletteGoddard]

You could try switching insurance companies.

I could do that. I would if:
I can find a company offering a lower amount for the same coverage, AND
its rate didn't rise by an amount higher than 7% within the last twelve months

Perhaps people will chime in with percentage gains in their premiums over the last three years, their home insurance company, and their locality.

[sweeps]

Why "and"? Even if a competing company also raised its rate 7%, you would still be better off because you'd be starting from a lower premium.

5%-10% is a pretty standard hike for premiums recently. Much higher though if you live along coastal areas.

Short term suggestion: Get a list of all the ways to cut your premium. You may be surprised what you can do to reduce your costs. For example, being a member of a professional organization or having a fire extinguisher in your kitchen.

Longer-term suggestion: Work to increase your credit score. Insurance companies are relying more and more heavily on credit score to determine your casualty risk, and ultimately the premium they charge you.

[Daylily]

Midwest Rural area:

1999 $403
2000 $432
2001 $440
2002 $515
2003 $700 (where'd this come from?)
2004 $935 (two years in a row!!!)
2005 $994
2006 $988 (it actually went down slightly!)

Coverage:
Dwelling $144k
Separate structures $21k
Personal Property $108k
Loss of use $72k
Personal liability $300k

$250 deductible

Hope that helps

[PauletteGoddard]

It does, thanks, Daylily.

I used my auto insurer's Website for a quote, and they gave me one that was 26% beyond what I am currently paying ($491 for 2007), and that was with discounts for smoke detector, fire extinguisher, deadbolts.

It may be that I'll have to make bigger chops in other expenditures to compensate for this 7% increase. I started paying $328 in 1999, and now it's $491, which includes the "Insurance Score."

I am in an earthquake zone and a coastal area.

[Daylily]

Originally Posted by PauletteGoddard

I started paying $328 in 1999, and now it's $491, which includes the "Insurance Score."

I am in an earthquake zone and a coastal area.

Goodness! I'm just in a tornado area. I guess my rates are ridiculous compared to the earthquake & coastal area.

Perhaps I need to look into my rates.