The insurance industry has become predatory

[hallett21]

Mom got this from the HOA on her rental property

Short story is the HOA property (duplex’s/town house) insurance policy was 70k a year for 39 million. Now it’s 600k for 15 million of coverage.

And they are converting to making the homeowner carry a full structure policy and they will terminate the HOA insurance policy. Minimum of a 35% premium payment and homeowners are footing it.

 

[monkeyswrench]

... insurance policy was 70k a year for 39 million. Now it’s 600k for 15 million of coverage.

I'm pretty much a simpleton when it comes to math and money, but F' me!
That's ludicrous!

 

[hallett21]

I'm pretty much a simpleton when it comes to math and money, but F' me!
That's ludicrous!

She’s getting quotes tomorrow but either way she’s gotta pay her portion of that premium. Tenants lease is up in September. Not too sure how they’re gonna feel about a 25% increase for my mom to break even. Even if you market it and get half back, a 10-15% loss in revenue sucks.

 

[Cole Trickle]

Mom got this from the HOA on her rental property


View attachment 1242123



Short story is the HOA property (duplex’s/town house) insurance policy was 70k a year for 39 million. Now it’s 600k for 15 million of coverage.

And they are converting to making the homeowner carry a full structure policy and they will terminate the HOA insurance policy. Minimum of a 35% premium payment and homeowners are footing it.

Crazy

That’s a we don’t want it price or a specialty carrier put something together because there’s no other option. (Lloyds,etc..)

My fear is that it might be hard for the individual unit owners to secure coverage. Sounds like there is about 100 units in the complex I would be securing coverage asap before the area is saturated.. try all carriers and you might get lucky.

One of my long term condo clients had the same thing happen to her association in coto de caza. I had her grandfathered on a condo policy but I had no chance of doing a full home policy on her unit so I lost the biz. She found someone but I think it was like $2500 a year for a 1200 sq ft condo with a high deductible. I think that carrier is no longer writing in ca.

 

[hallett21]

Crazy

That’s a we don’t want it price or a specialty carrier put something together because there’s no other option. (Lloyds,etc..)

My fear is that it might be hard for the individual unit owners to secure coverage. Sounds like there is about 100 units in the complex I would be securing coverage asap before the area is saturated.. try all carriers and you might get lucky.

One of my long term condo clients had the same thing happen to her association in coto de caza. I had her grandfathered on a condo policy but I had no chance of doing a full home policy on her unit so I lost the biz. She found someone but I think it was like $2500 a year for a 1200 sq ft condo with a high deductible. I think that carrier is no longer writing in ca.

Location is Westlake Village/Thousand Oaks. Not sure if that matters? Backs up to hillsides.

 

[GreenEnergy28]

I was talking with a guy a few streets over from me last weekend and he asked me who I have my homeowners through. Apparently, he got dropped from him due to fire hazard in our area. I have State Farm as mentioned before but he said they are no longer taking policies in CA. I sure hope they don't up and decide to drop my policy!

 

[D19]

Just got my AZ auto renewal for 2 vehicles. No claims or tickets. Over a $600 yearly increase! I can't believe that!

 

[EmpirE231]

Rumors are that Farmers is supposed to make an announcement today.

 

[hallett21]

Rumors are that Farmers is supposed to make an announcement today.

A good one or bad one lol

 

[EmpirE231]

A good one or bad one lol

good news would be awesome.... but lets jut say all recent "announcements" have not been good news!

 

[OldSchoolBoats]

Mom got this from the HOA on her rental property


View attachment 1242123



Short story is the HOA property (duplex’s/town house) insurance policy was 70k a year for 39 million. Now it’s 600k for 15 million of coverage.

And they are converting to making the homeowner carry a full structure policy and they will terminate the HOA insurance policy. Minimum of a 35% premium payment and homeowners are footing it.

INSANITY!!!

 

[Lotoguy]

Interesting article

Companies Pull Back from Property and Auto Insurance Markets

This week, Nationwide announced it is pausing writing business in certain lines of insurance, joining the list of insurers who have withdrawn from markets.

www.iamagazine.com

 

[Roaddawg]

Got my yearly homeowners yesterday..$1200 a year increase

 

[shintoooo]

Well, looks like my insurance will probably go up again next renewal or get cancelled

Came home to this down the street.

 

[ChumpChange]

Mine doubled last week. Daughter turned 16 and got her license.

 

[530RL]

Farmers Insurance pulls out of Florida, affecting 100,000 homeowners

TALLAHASSEE — Farmers Insurance Group announced Tuesday that it would no longer write new policies or renew existing homeowner, auto and umbrella policies, a day after Florida Chief Financial Officer Jimmy Patronis took to Twitter to threaten to take action if it did. “Hearing rumors...

www.yahoo.com

 

[Cole Trickle]

Major insurance company abandons homeowners in two key states

Own brand policies to stop in multiple lines

www.insurancebusinessmag.com

 

[OldSchoolBoats]

Just got my renewal for Havasu house through Liberty Mutual. $500/year increase. Now paying $2230/yr. When we first got the policy in 2018 it was under $1000. No claims or anything.

 

[shintoooo]

My daughter got her license yesterday. Put her on my insurance at State Farm. $500 full coverage a month just for her on a 2013 Honda Accord. I said fuck that and just got liability insurance for $160/month for that car. She’s covered full on all the other cars.

 

[OldSchoolBoats]

My daughter got her license yesterday. Put her on my insurance at State Farm. $500 full coverage a month just for her on a 2013 Honda Accord. I said fuck that and just got liability insurance for $160/month for that car. She’s covered full on all the other cars.

That's crazy. That's about what we pay per month for Jen, Kaylee and I on the Yukon and Escape.

 

[shintoooo]

That's crazy. That's about what we pay per month for Jen, Kaylee and I on the Yukon and Escape.

I’m paying $1200/month for 5 cars

 

[LargeOrangeFont]

I’m paying $1200/month for 5 cars

$14k per year? Do you have moar kids than Joe?

 

[CoolCruzin]

I keep switching the insurance company I use .
No loyalty here . And I had one cancel me aswell
Best price wins

 

[shintoooo]

$14k per year? Do you have moar kids than Joe?

This is with clean driving records too

 

[LargeOrangeFont]

This is with clean driving records too

It’s rough out there.

 

[530RL]

It looks like it is going to get worse for those who live close to historical and projected high risks.

May make living in some of these areas only available to those who can pay cash and self insure.

Home insurers cut natural disasters from policies as climate risks grow

In the aftermath of extreme weather events, major insurers are increasingly no longer offering coverage that homeowners in areas vulnerable to those disasters need most. At least five large U.S. property insurers - including Allstate, American Family, Nationwide, Erie Insurance Group and...

www.yahoo.com

 

[Angler]

Wawanessa Insurance is selling it's US subsidiary to AAA.
Looks like another increase for insurance on my cars.

 

[Flatsix66]

You can add USAA to the list of insurers that will not write new home policies for most Ca areas. https://sfstandard.com/2023/08/31/i...home-insurer-to-limit-business-in-california/

 

[evantwheeler]

May make living in some of these areas only available to those who can pay cash and self insure.

That would drive values into the ground, no?

 

[530RL]

That would drive values into the ground, no?

Depends on how many people can afford to pay cash and self insure? If there are not enough people who can pay cash, then it certainly will over time.

It will certainly change how people maintain and rebuild as studies have shown when one is on the hook for themselves, their behavior changes.

The historical problem is that those who live in low risk areas have been subsidizing the insurance for those who live in high risk areas for decades. The insurance companies have mutualized the risk. With modern technology, insurance companies can pinpoint with pretty good accuracy where the risks are and take the cyclicality out of their business model by not serving those high risk areas. My homeowners insurance has increased at a rate about 1/2 of inflation over the last several years, and I suspect it is because as the insurance drops the higher risks, they can more accurately predict their losses and price with more confidence.

 

[LuauLounge]

Feeling lucky,
3 homes, 6 vehicles, boat, and motorcycle with State Farm. My previous company was Nationwide, who I was with for over 20 years, decided that I was in a high risk area and decided not to renew my HO policy 2 years ago. Premiums with SF are $13,500/yr and no major hikes over the last 2 years. A few months ago SF announced no new polices in California.

 

[Orange Juice]

I could have gone without insurance up to this point in my life.

Hindsight being 2020.

 

[Flying_Lavey]

So who is the local RDP vehicle insurance person in AZ?

 

[Justfishing]

Investigate insurance company losses over the last couple quarters.

They have been getting killed.

Billions lost

Nobody turns in claim’s except for all the people that do. Companies are fleeing the state due to regulations and no longer having the ability use the same statistics they did 20 years ago.

Cell phone has ruined car insurance and people thinking homeowners policies are maintenance policies is insane. Nobody knows how to fix simple issues anymore and cars have gotten so fancy they cost a fortune to fix after minor accidents. (Do a search for the 42k rivian claim in a parking lot type accident)

It’s bonkers 25+ years in the business and I have never seen these kind of issues or the claims we see turned in on the daily….very not fun over the past 9 months.

Speaking of auto repairs. I sometimes watch a video of a ford tech that has his own shop. It wasnt an accident but he was working on a 2018 pickup. The tail light assembles have the blind spot senors built into them. Then there is a module on the back of each of them. The tail lights leaked and water damaged the electrical connectors and modules. All done parts needed were a wiring harness, 2 tail light assemblies and 2 modules, labor and diagnostics. the bill was a staggering $5600. Are the roads any safer with all this extra costs.

 

[hallett21]

So a little update to my moms rental. She got assessed again. I want to say the all in cost is up to $7,500.

Reason being that the HOA would need to change its structure in order to get some insurance companies to quote them. But you can’t do that because you’d lose your currently policy. Supposedly. It’s a complete cluster F.

She had no choice but to kick up rent 10% on the tenants. They are paying it but it’s still gonna be a loss overall.

 

[76sanger]

So let's discuss the reason or reasons why?

 

[hallett21]

So let's discuss the reason or reasons why?

I think the largest reason is that insurance companies lost their ass in 2022 in the stock market. Couple that with fires and hurricanes causing billions in damage they are trying to stop the bleeding.

Funny how they are willing to take your money when times are good lol.

 

[Todd Mohr]

Does your homeowners insurance do inspections on your home to determine if there are repairs needed? My aunt (80 years old) got a letter from Allstate claiming some repairs are needed to keep the policy active. They even put a due date on when the repairs needed to be completed. I've been a homeowner for 35 years and never had this happen to me. What does the RDP brain trust advise? Seems like a scam to me but the paperwork is from her agent.

 

[Cole Trickle]

Does your homeowners insurance do inspections on your home to determine if there are repairs needed? My aunt (80 years old) got a letter from Allstate claiming some repairs are needed to keep the policy active. They even put a due date on when the repairs needed to be completed. I've been a homeowner for 35 years and never had this happen to me. What does the RDP brain trust advise? Seems like a scam to me but the paperwork is from her agent.

If its an older house this is 100% normal in todays market.

We are seeing quite a few non renewals on older homes that have not been updated with new plumbing ,roof and hvac/electrical. (Plumbing and roof are the biggies)

They want off the hook on all ticking time bombs.

 

[Todd Mohr]

If its an older house this is 100% normal in todays market.

We are seeing quite a few non renewals on older homes that have not been updated with new plumbing ,roof and hvac/electrical. (Plumbing and roof are the biggies)

They want off the hook on all ticking time bombs.

Makes sense to limit liability, My aunt's house was built 1936 by my grandfather so it's not up to code in any way possible. The repairs are small easy fixes for now, maybe a day's work for a handyman. My worry is this is the tip of the iceberg, the house is very run down. She needs a policy as she has a mortgage, she does not have a lot of income to bring the house up to spec if additional repairs are required. Do these situations end with the homeowner forced out of the house because they can't afford to bring it up to insurable levels? I have 2 aunts living in the house now, my mom lived there as well until she passed last December. Kind of worried for them.

 

[Cole Trickle]

Makes sense to limit liability, My aunt's house was built 1936 by my grandfather so it's not up to code in any way possible. The repairs are small easy fixes for now, maybe a day's work for a handyman. My worry is this is the tip of the iceberg, the house is very run down. She needs a policy as she has a mortgage, she does not have a lot of income to bring the house up to spec if additional repairs are required. Do these situations end with the homeowner forced out of the house because they can't afford to bring it up to insurable levels? I have 2 aunts living in the house now, my mom lived there as well until she passed last December. Kind of worried for them.

This is all new but I can tell you I don't know of a single insurance company that would even consider that risk right now.

Do what you can to band aid the home to keep the policy in play.

I do see issues approaching for hard to place insurance risks. I have a long time client that bought a house in Canyon Country and 'i want able to write the house years back due to it being a brush risk. He found someone back in 2020 and that got non renewed a year later. He then found a company that cost a ton but wrote it for 2 years and that just got non renewed. Started a new policy again with another carrier and it never made it through underwriting. He ended up having to get a fairplan policy and then he still has to get a (DIC) difference in conditions policy to satisfy the mortgage co. I'm quoting him on the DIC policy and between the 2 policies a 1800 sq foot house is 4k a year with 5k deductibles.

If I was looking for a house right now I would stay as far away from brush as you can and I also wouldn't be looking at homes older than 1980.

 

[Todd Mohr]

This is all new but I can tell you I don't know of a single insurance company that would even consider that risk right now.

Do what you can to band aid the home to keep the policy in play.

I do see issues approaching for hard to place insurance risks. I have a long time client that bought a house in Canyon Country and 'i want able to write the house years back due to it being a brush risk. He found someone back in 2020 and that got non renewed a year later. He then found a company that cost a ton but wrote it for 2 years and that just got non renewed. Started a new policy again with another carrier and it never made it through underwriting. He ended up having to get a fairplan policy and then he still has to get a (DIC) difference in conditions policy to satisfy the mortgage co. I'm quoting him on the DIC policy and between the 2 policies a 1800 sq foot house is 4k a year with 5k deductibles.

If I was looking for a house right now I would stay as far away from brush as you can and I also wouldn't be looking at homes older than 1980.

Thank you for the advice. Todd

 

[77charger]

Does your homeowners insurance do inspections on your home to determine if there are repairs needed? My aunt (80 years old) got a letter from Allstate claiming some repairs are needed to keep the policy active. They even put a due date on when the repairs needed to be completed. I've been a homeowner for 35 years and never had this happen to me. What does the RDP brain trust advise? Seems like a scam to me but the paperwork is from her agent.

Happened to my trans builder they sent a drone over his backyard said he needs to redo roof and move things around in backyard.He was insured with company for 50 years at the time too,

 

[Havasu Rehab]

Just got my renewal policy from Farmers. The policy hiked from just under $2K a year to just over $5K. This sucks…

 

[DaveH]

glad all these states mandated fire sprinklers in homes at your expense, obviously helping with these rates.

 

[Singleton]

So WHO is left to write policies in CA.
It’s becoming a monopoly - Newscum must have stock in those that are left

 

[LargeOrangeFont]

Just got my renewal for my CA adjacent Havasu house.. premium more than doubled. Bye bye Liberty Mutual.

 

[Sportin' Wood]

Just got my renewal for my CA adjacent Havasu house.. premium more than doubled. Bye bye Liberty Mutual.

Ostrich feed must be expensive. God knows it's not that shit box car they drive in the commercials.

 

[mjc]

I must be lucky my havasu place went from 870 to 1035 so not to bad.

 

[NicPaus]

Happened to my trans builder they sent a drone over his backyard said he needs to redo roof and move things around in backyard.He was insured with company for 50 years at the time too,

They must of used a drone at my house also. Paint under the back eave. I just painted the exterior but not the area the addition will be. No way they went in the yard with the locked gates and dog.