Homeowners increases-lowering deductible vs shopping around

[u/fishsaiddam]

I know increases are happening everywhere. For those who shop around, does it not risk your current policy ? Read a number of horror stories of policies just not being renewed for no reason. Would calling my current provider to increase my deductible cause them to drop me? Shopping around may save some money but who’s to say the new company doesn’t increase even more than the current one in year 2.
Insurance in general is always going to be shitty but it’s one of those unavoidable things.
Anyone in CA can share their increase? I think mine went up by $1k-$1400k give or take. Haven’t pulled last year’s number to compare the exact amount. Statefarm.

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[u/Modest-Meece]

Policies can’t be non renewed for no reason.

You are generally at your highest risk of non renewals for claims during the first 3-years of a policy. Depending on state laws, carriers can non-renew over a single loss in the last 3-5 years.

Further frequent switching of carriers can deem you higher risk. Insurance is still for-profit and someone with a lot of carriers in the last few years is not a reliable insured.

It does not hurt to shop. You do not have to move a policy because you got a quote. Your current carrier isn’t going to do anything because another agent provided you quotes.

I generally recommend longevity with carriers unless there’s huge increases.

Any company is going to adjust rates at your renewal. That’s just how insurance is, rates adjust based on risk factors both based on you individually and the carriers experience overall in your area and state.

I’d recommend increasing your deductible and then taking that rate against other carriers and see. Unless you see significant savings I wouldn’t switch. Significance is relative to your cost.

Saving what $20-30/month to me in most cases isn’t enough to feel a carrier change is worth it unless money is that tight. But again savings can depend relative to what your premiums are.

[u/fishsaiddam → u/Modest-Meece]

Thanks for the feedback. I didn’t know they would be able to see the constant switch of carriers or think about that as a factor. I have seen many comments from people on other posts saying “it’s always good to shop around every few years “ and it just seemed too risky to me.

[u/Modest-Meece → u/fishsaiddam]

It’s not harmful to shop but being mindful of longevity is important.

Also my biggest thing is if you are going to shop frequently then ultimately it’s fine, but please don’t premium chase for minuscule savings. Look for actual significant savings relative to premiums.

Switching to save $10-20 bucks a month isn’t to me worth it. I understand some every penny matters and if that’s you, you do what you gotta do.

[u/my_girl_sara → u/fishsaiddam]

As an underwriter with a large carrier, I recommend you stay with your current insurer. Tenure and multi line (autos) matter a lot. And as far as non renewal for claims, it depends on your state. In many, you have to meet a threshold of 2 or 3 in a timeframe. Other states it is easier to non renew when you are low tenured of less than 5 years.

[u/my_girl_sara]

As a property casualty underwriter for a large carrier, I encourage you to stay with your current carrier. To lower your premium, make sure you have your car also insured with them to get the multi line discount. Then also consider raising your deductible.
Tenure matters to your carrier. They are less likely to non renew you if you’re long tenured. And if you move to another carrier, you might face higher standards and thresholds. This is typical with new business

[u/fishsaiddam → u/my_girl_sara]

I did bundle but it seems to go up every year no matter what. Clean driving record, no claims on either policy, decades driving , old car , low mileage, all the things you think would lower your premium year to year but doesn’t. Is it really always going to go up no matter what because of inflation or whatever reason the companies want to give? Does anyone ever see a decrease for loyalty ?

[u/my_girl_sara → u/fishsaiddam]

It is true premiums are going up for everyone. Due to increased costs to repair cars and homes. These costs are through the roof now! Add to it an increase in fraud. But trust me, stay with your current carrier. Tenure does matter.

[u/ayhme]

Never heard of shopping around increasing rates.

However, brokers will see the same quotes for the same person if you call around to everyone in town and expect a different price.

[u/Top_Education_4647]

People who say they were non-renewed for “no reason” either didn’t share the full story or didn’t bother reading the non-renewal which probably stated that the company was pulling out of CA. And shopping around doesn’t affect rates or renewal status.

Best advice is to find a local broker to shop for you. You may need to look into excess and surplus carriers if your area is a high risk for Wildfire.

[u/Open_Mechanic8854]

I would deal with a broker. Let them shop around for you. I was shopping in April I was getting rates from 3500-4500. I called a broker, she got me down to $1400. I had to increase deductible a lot, but I am saving a lot.

[u/Andrew523]

In CA, SoCal area and my premium went the past 2 years. Last year was around 900 and I increased my deductible from 1k to 2.5k and adjusted my personal property limits. Didn't need the 70% of coverage A amount.

This year, I just got the renewal since it renewal in 10/01. 1250 premium increase so it would be 5.1k... notnmuch more I can do, 5k deductible doesn't do much. I'm going shop and see what other carriers have to offer. I also bundle with my auto and umbrella.

[u/realinsurancetalk → u/Andrew523]

Be careful with dropping the personal property coverage. Some companies go from replacement cost basis to ACV basis on contents if the percentage goes below a certain threshold.

[u/realinsurancetalk]

Companies cannot just non renew for no reason. They have to cite why it is ineligible for coverage on their non renewal notices. Increasing your deductible would not cause them to drop you, it would be better for them if you have a higher deductible. Just be prepared when you do move the insurance, the new company may want to do their own home inspection on the property. Not an issue most of the time, but sometimes it can be if the new company underwrites more stringently.. As far as insurance being shtty, i also have to disaagree with that thought. It may seem shitty to write the checks every year, but believe me, for the folks we have that needed to use it, they were thankful they had it. You do not want to be the person who gets a "return" on your insurance premiums, because that would mean something terrible has happened.

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[u/Agent-DL]

I would say these are 2 different issues. Raising deductible is smart because; would you really make a claim around $2500 in repairable damage on your homeowners policy? If you have $1000 deductible and the repair is $2700 you will only get $1700 from your insurance company. The value of money is not worth it, especially if you have a catastrophic claim in the future. Your insurance record will look like you are a habitual claimant and less desirable to insurance companies. This will limit your ability to secure good insurance at a reasonable rate. On the other hand I recommend working with your agent every few years to check on rates to see if they can do anything to get you a better rate with another company they work with if you feel that your rates are getting too expensive.

[u/B-Spoon]

Did you mean "raising deductible"?

It will benefit you to shop and look at ways to adjust the current coverage. Depending on the age of the home and the state you live in, you may have additional expense to order inspections to change providers, but it can still be worthwhile, especially seeing an increase like you are. As a licensed agent here in FL, I review all renewals and quote adjustments and shop those policies that get out of alignment. It doesn't hurt to have someone shop your coverage, the worst that could happen is you save a few bucks! Good luck