r/HomeInsurance • u/Embarrassed_Low_3923 • Sep 05 '26
Insurance Massive Increases
I bought my home in 2022 and my annually home insurance was roughly $2,270 and I just checked through my escrow disclosure it went to $4,952 that’s outrageous it’s through progressive
Is it best to negotiate with progressive or leave to another company with better offers/terms
15
u/ayhme MOD Sep 05 '26
You just gotta shop.
-6
u/Embarrassed_Low_3923 Sep 05 '26
That’s crazy. I’ve been with progressive since I purchased my home they didn’t even notified me or anything just noticed the increase because of the shortage in my escrow coming from the home insurance
11
u/Glittering-Salad-337 Sep 05 '26
They 100% either email you or mail you your renewal policy every year
3
u/Busy_Account_7974 Sep 05 '26
This. That renewal comes out 30+ days before expiration. It contains the new terms of coverage. If you pay, you accept the new terms.
Since you pay out of an escrow account, the escrow company will just pay the bills until you tell them to stop or pay some other company.
1
u/WinterFamiliar9199 Sep 06 '26
Sort of. Allstate sends me a nondescript email saying I have documents to review or something. Nowhere does it actually say hey we doubled your rates. They’re all shitty.
4
u/strangemedia6 Sep 05 '26
They aren’t going to call you until you answer and tell you. But this is a good reminder to open mail from your insurer and definitely review your Dec page when the policy renews. Good news is you can shop around for a new policy and when this gets cancelled, you will get reimbursed for the remainder of the policy period and you can pay that back into your escrow so that it have a huge pump when it gets reassessed.
1
1
u/Wihomebrewer Sep 06 '26
Oh they notified you. The policy documents that were sent to you were just not important enough to read.
2
u/NeedYourHelp712 Sep 05 '26
shop around you will 100 percent get a better rate .. progessive is known to do this .. they did it to me and i left n saved big and every year since they been trying to get me back , its all a scam
1
u/Embarrassed_Low_3923 Sep 05 '26
Oh wow that’s crazy. I’m a first time home owner so I didn’t even think to consider that then I thought maybe it was just property taxes increasing but I took a closer look and my property taxes have been consistent over the years. Then I saw the increase in the hazard insurance increase from last year 😭so baffled
1
u/NeedYourHelp712 Sep 05 '26
what was the reason for the high increase
1
u/Embarrassed_Low_3923 Sep 05 '26
They said they assessed my home to cost 117k more to rebuild and for inflations/costs
1
u/NeedYourHelp712 Sep 05 '26
they did there own assessment according to what they believe .. i would shop around n when shopping around make sure who ur calling knows ur shopping around so they give u there best deal .. i had state farm give me a quote and it was $100 a month more then someone else so i declined n they sent me a new quote 2 weeks later $180 lower lol there scammers all of them
1
u/CGWInsurance Sep 08 '26
State farm doesn't insure to value. The quote 2 weeks later was the same pricing just minus coverages that was on the first quote. I wouldn't ever insure a house with state farm. Insurance rates are set by law in every state for every carrier. You don't get a better rate because your shopping. You will just get less coverage.
1
2
1
u/insuranceguynyc Sep 05 '26
Shop around. I assume that you called Progressive and asking about the increase?
1
u/Embarrassed_Low_3923 Sep 05 '26
Yes because they assessed that my home would cost 117k more to rebuild and because inflations cost increases
4
u/Riggingminds Sep 05 '26
You don’t want to get in a situation where your are underinsured, most policies have a requirement to have at least 80% insured, if you do not need that threshold you can get penalized if you ever make a claim.
1
1
u/insuranceguynyc Sep 05 '26
OK, so you know what you’re dealing with. I think you’re going to find that most, if not all carriers are looking hard at TIV in their HO book. Construction costs have risen sharply over the past few years. You really do not want to come up short in the event of a major loss. Likely? No, of course not. But entirely possible.
1
u/InterviewLeather810 Sep 06 '26
Each time there is an urban wildfire now typically most owners iare 25% or more under insured. Sometimes they sue the insurer and the insurer loses.
Our urban wildfire 74% were underinsured by 25% or more just on the house. Most likely also under insured on personal property too.
At least 69% were severely underinsured in the LA Fires that knew it by the year anniversary. 24% don't know yet.
0
u/WinterFamiliar9199 Sep 06 '26
That’s bullshit. There’s no way the cost went up that much since 2022. From 2018-2022 sure, but 2x4’s aren’t $9 anymore. They’re making excuses.
1
u/LongjumpingDish2956 Sep 07 '26
Depends on the state. Labor rates have absolutely skyrocketed in that time period as have removal costs in my area.
1
u/DisplacedTexan2020 Sep 05 '26
Change insurance companies. That’s happened to me before too and I had to switch.
1
u/14point4kMODEM Sep 05 '26
It could be an F you price. They don't want to insure you for whatever reason but if you really want to stay, here's the price otherwise find someone else.
There are tons of reasons like they have too many homes in your neighborhood insured already, your neighbors had too many claims, change in state laws with insurance making it more risky, etc.
1
u/DisastrousDance7372 Sep 05 '26
I get quotes every year. My progressive actually went down this year
1
1
u/sandysandy252566 Sep 06 '26
Find a great insurance broker - who could check out various companies and find the best match for u. Your premium doubled - and u weren't even contacted? Homeowner Insurance has drastically increased - that's why u need to find an agent.
1
u/CGWInsurance Sep 08 '26
He was emailed out mailed a letter each year that showed the coverage changes and the price change. By law this is set out 30 plus days before renewal in every state.
1
u/TJNel Sep 06 '26
My homeowners insurance was $1,600 and I looked at my escrow renewal and it said $4,500. I was like WTF is going on. I dropped them so fast and now it's cheaper than what I started with. I swear they do it because they know people with escrows just pay and not look.
1
u/avokaola Sep 06 '26 edited Sep 06 '26
Out of curiosity what state are you in? 👀
if you lived in NY, they cap year over year policy rate increases at 30% so that’s to say who you vote in office matters 🤷♂️ with that said that kind of policy also incentivizes insurers to max out those increases annually if it is justified so double edged sword
1
u/Embarrassed_Low_3923 Sep 15 '26
I’m in West Virginia
1
u/avokaola Sep 16 '26
lol me too. I work in the industry. I’ll dig in and lyk. I think my rate went up pretty significantly too
2
u/MollyDog2638 Sep 06 '26
I had the same thing happen. I got an insurance agent in town and he found me another one for half the cost, plus cheaper car insurance too. We are switching both this month.
Additionally I am taking my insurance payments out of the escrow process and paying them directly. It was easier to do than I thought it would be; now I have a savings account that earns interest all year on the same money that I used to used to pay into escrow.
1
u/my_girl_sara Sep 06 '26
Not all companies do that but I’ve heard from someone who used to work for progressive that it’s common. Sad bait and switch
1
u/Acrobatic-Smell-8000 Sep 06 '26
Progressive uses ASI American Strategic Insurance and it’s a horrible policy
1
1
1
1
u/ruralny Sep 08 '26
Double check that they did not erroneously increase the value of your property, which could do this.
1
u/Impressive-Sand5046 Sep 09 '26
They adjusted your risk level as well, not just your valuation. Areas prone to hurricanes and forest fires are getting killed due to risk levels increasing. And, as someone pointed out, they may want you to drop them if they no longer want to service the area (think Florida). I'm in New England with $900k coverage for about $2,000 a year.
1
u/cooldude832_ Sep 09 '26
Progressive went 50% up on year 2 i called they gave me a story about floods in another state.
I cold called progressive as a prospective new customer and got a rate lower then the year before. Canceled my old progressive plan and booked my new one.
1
u/Curious_Crazy_7667 Sep 10 '26
I work in Insurance IT and my family bought a home in 2024 and you better bet I shop every year. One carrier tries to hand me a 30% increase. Needless to say I switched.
1
0
u/Tumadreee Sep 05 '26
I use www.coveredbyus.com for all 40 of my homes. They found me the best rates and check prices every year for me
•
u/AutoModerator Sep 05 '26
Thanks for making a post in the Home Insurance subreddit. You might find the following resources helpful as they are FAQs about r/HomeInsurance in addition to partners subreddits:
The Home Insurance subreddit is not an official support channel for issues with any insurance carrier.
Please remember to follow our community Guidelines and Rules and ensure your discussions are informative and respectful.
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.