How much has your home insurance risen?

[MFlo]

How much has your home insurance risen this year

[WishingWealth]

IIRC about 4% for the house.
Both house and car are with the same insurer/broker.
I told the guy to sharpen his pencil for the coming car ins. renewal or I would seriously start* looking around.
Whether it was a coincidence or 'the threat', the car ins went down.

WW

* for some reason - way too long story - I stick with them 'cos when I moved back to QC some years ago a couple insurers were a bit leery about insuring a particular risk.

[brucecohen]

When my insurance was renewed in mid-2009, the premium jumped 8.3%.

I don't know but that might have been related to the move of the fire station that covers my area. I was previously just inside the insurer's 10 km radius. Now I'm a few km beyond that.

[pmj]

One of the inputs into the premium for home insurance is the building value - usually based on the "rebuilding" cost - which is quoted up front on my policy. The contents insurance is often some percentage of the building value. So I'd think the first question would be to check the increase in building value - and compare the increase in premium to that increase.

[northbeach]

I recently added solar panels to my home insurance. I was asked to fill out a Home Property Evaluation Form.

Because of that my insurance will be going up a far bit more than just for the additional cost of the solar panels although I do not have the final figures yet (I figured this out by the value the house has been given and subtracting the cost of my solar panel installation).

My broker has told me that the Home Property Evaluation Form revealed that I was under-insured. My house is 6.5 years old and had a 4% inflation yearly inflation rider, so I was surprised at the size of the upcoming increase. Perhaps I was under-insured from day one. I am not sure how they set my insurance originally. Did they take the purchase value of the home less value of the land or did I fill out the Home Property Evaluation Form. Perhaps I was more accurate when filling out the form this time. If they took the value of the home, then I must have got a good deal on its construction as todays value is significantly higher.

Apparently, the value of the insurance for the house will be greater than the value of the house, since if the house, burns down, things have to be cleared up before a new house is erected.

[Pickles]

Apparently, the value of the insurance for the house will be greater than the value of the house, since if the house, burns down, things have to be cleared up before a new house is erected.

That sounds odd if you are saying that you are insured for more than the purchase price of your property. Your purchase bought land and a building. Only the building needs to be insured. Do you live in an area where land is so cheap that buying a house costs the same as buying a condo?

[northbeach]

Apparently, the value of the insurance for the house will be greater than the value of the house, since if the house, burns down, things have to be cleared up before a new house is erected.

That sounds odd if you are saying that you are insured for more than the purchase price of your property. Your purchase bought land and a building. Only the building needs to be insured. Do you live in an area where land is so cheap that buying a house costs the same as buying a condo?

The land is not insured, however reconstructing a house, in the unlikely event that it burns down would bear additional expense since the site has to be cleaned up first.

I will wait till my yearly renewal comes in late April. I may call my broker then if I feel I am overinsured.

[deaddog]

It looks like my insurance rate increased 48% this year.
Last year the cost per $1000 was $1.68
This year the cost per $1000 is $2.50
On top of this the value of the home the insurance company computes increased by an additional 14%
All told my increase totals 70%

[Jo Anne]

Apparently, the value of the insurance for the house will be greater than the value of the house, since if the house, burns down, things have to be cleared up before a new house is erected.

That sounds odd if you are saying that you are insured for more than the purchase price of your property. Your purchase bought land and a building. Only the building needs to be insured. Do you live in an area where land is so cheap that buying a house costs the same as buying a condo?

Pickles, in rural areas it is quite common to be able to purchase a house for a lot less than what it would cost to re-build it. The first year we lived in this house, our insurance agent said she didn't care what we paid for the place ($90k), she just wanted to know the square footage (1,800 sf) because at $125/sf it would require $225,000 in insurance coverage.

[deaddog]

As I mentioned up thread I am now paying $2.50 for $1000 of Home insurance.
I'm in north central BC, in town with a hydrant within 1000 ft. Electric heat.
Am I being shafted?
What is everyone else paying?

[Jo Anne]

As I mentioned up thread I am now paying $2.50 for $1000 of Home insurance.
I'm in north central BC, in town with a hydrant within 1000 ft. Electric heat.
Am I being shafted?
What is everyone else paying?

I am paying $1,275 for $550,000 of insurance on the house, detached structure, and personal property, along with the liability, voluntary medical, etc. This is about $2.32 for $1,000 of insurance.

My environment is totally different. Rural, fire department (volunteers only) within 5 miles, oil heat supplemented by a wood stove.

[AltaRed]

I am paying $582 for a 1300 sq. ft. bungalow villa (plus fully developed basement) in Calgary within 1000 ft of a fire hydrant (the policy is called the $1,000,000 solution) plus liability insurance for a significant piece of undeveloped land in the mountains. I don't have time at the moment to dig through what the "milliion dollar solution" all covers.

[HardWorker]

My insurance went down quite a few bucks, from $780 to $540 after I switched the house and 2 vehicles to another company. Thats on a $450,000 policy, so $1.2/K. 1M Liability, sewer backup, etc are all included, and a $1,000 deductible. All together I saved close to a $1,000 a year with the house and 2 cars. Shop around, loyalty doesn't pay.

http://www.kanetix.ca and
http://www.insurancehotline.com

[Pickles]

Jo Anne, thanks for the explanation. I thought something of the sort might impact on Northbeach's situation. In Toronto, you basically get the house for free when you buy the land. The difference is that most houses are very small, so the rebuilding cost is lower than the price of the land.

I pay Johnson Insurers a total of $632 for $246,000 rebuilding costs (our modest city 1 1/2 storey home is about 1000 sq ft), $210,000 personal possession, $2 million liability and sewer backup. I had to claim on the sewer backup last year and was pleasantly surprised that the $500 deductible was waived. My coverage is up 17% and premium is up 16% from last year; lower than I expected since I lost the 5% discount for a claims free history. In the previous year, my premium had decreased by 10% for no reason that I could fathom. When I switched to Johnson from Cooperators, I saved more than 20%. I am still paying less than Cooperators wanted to charge me on renewal in 2004.

[WishingWealth]

@ the G&M: http://www.theglobeandmail.com/globe-in ... le1535133/

Looking for a better deal on home insurance? Good luck
All insurers are raising rates. That bloated renewal rate is their very best offer. It's the high level of claims
...
You probably know yourself how this tune goes: Bad weather and rising costs cut into our profits. So we're charging you more, from your foundation to your soffits .

Inflation has averaged just under 2 per cent over the past five years, but the average annual increase in our home insurance bill was 10.2 per cent. I live in a four-bedroom home in the suburbs of Ottawa with my wife, two boys, a dog and cat. We think it's a pretty nice house, but the Taj Mahal it's not.
The problem isn't just that my insurer is raising its rates. It's that all companies are doing it to one extent or another, and it's near impossible to find a better deal.
...

Guess I'll have a bigger surprise in one and a half year since I usually renew for two years. Apparently this shaves a dollar or two from the premium.

WW

[OhGreatGuru]

I am paying $582 for a 1300 sq. ft. bungalow villa (plus fully developed basement) in Calgary within 1000 ft of a fire hydrant (the policy is called the $1,000,000 solution) plus liability insurance for a significant piece of undeveloped land in the mountains. I don't have time at the moment to dig through what the "milliion dollar solution" all covers.

TD Monnex's "Million Dollar Solution" covers $1M liability and up to $1M property loss. But the $1M property loss is a bit of an illusion, because their actual liability for property loss is limited to replacement cost of the house & contents. And their pricing would be based on their records of your property size. It's very hard to translate to a $/thousand of coverage because they may charge a higher premium for the same Million Dollar Solution to someone with a larger house.

[northbeach]

My broker started panicking when I suggested I was paying too much for insurance and started shopping for me.

So I am now down to the $2.50 per $1000 formula (as provided in previous posts). Instead of paying over $1200.00, I will be paying less than $800.00.

I am wondering why my broker, when contacted to add solar panels to my policy, did not tell me that my current rates were exceedingly high.

I will have to look again in September when my car insurance comes up for renewal. It seems that the new house insurer may be significantly higher priced for car insurance. However, I believe I have a minor accident come off record prior to that and am hoping I can use the same insurer for both house and car. This should allow a competitive price as bundle discounting would apply.

[Springbok]

It looks like my insurance rate increased 48% this year.
Last year the cost per $1000 was $1.68
This year the cost per $1000 is $2.50
On top of this the value of the home the insurance company computes increased by an additional 14%
All told my increase totals 70%

We are insured through TD Meloche Monnex as part of the PEO affinity plan. Our insurance increased by close to 25% to about $1050 for a 2000 sq.ft. home. Rebuilding cost was increased from $440k to $460k.

When I questioned this, they said that the group had lost it's discount due to high number of claims. They also said that in past years there had been a high frequency of sewer backups in our area.

It seems to me that our affinity plan is no better and perhaps worse than what I could get elsewhere.

I asked how much it was costing me to protect against sewer backup. Was told that it was $256 for sewer backup and underground water damage. I explained that our home is 100% above grade (no basement) and that we are connected to sewers. Agent said, that our septic system might backup. Not likely unless water can flow uphill. Anyway, they removed this coverage so we are now below $800. Were are still covered for damage caused by ice, snow, above surface water etc.

Seems to me we should be able to insure for an agreed value. I would insure for $300k rebuilding cost. If it costs more, so be it. But we would probably just sell the land and collect the $300k and have $500-600k to buy another place. (Similar properties of lesser value sold adjacent to us in the $300-400k range and in both cases torn down and large homes built.

[jonathan]

It's all a rip off. We had a claim for $7,000 against Western Insurance for a flooded basement. They refused to pay, and were quite happy to spend 10,000 - 15,000 defending themselves in Small Claims Court. (The President earns $4,240,000/yr. Guess where your premiums are really going!)

[twa2w]

we should be able to insure for an agreed value. I would insure for $300k rebuilding cost. If it costs more, so be it. But we would probably just sell the land and collect the $300k and have $500-600k to buy another place

Don't count on doing this. AFAIK most insurance companies insist on a rebuild. You have to fight long and hard to get them to payout a lump sum.

Cheers
J

[Pickles]

I pay Johnson Insurers a total of $632 for $246,000 rebuilding costs (our modest city 1 1/2 storey home is about 1000 sq ft), $210,000 personal possession, $2 million liability and sewer backup. I had to claim on the sewer backup last year and was pleasantly surprised that the $500 deductible was waived. My coverage is up 17% and premium is up 16% from last year; lower than I expected since I lost the 5% discount for a claims free history. In the previous year, my premium had decreased by 10% for no reason that I could fathom. When I switched to Johnson from Cooperators, I saved more than 20%. I am still paying less than Cooperators wanted to charge me on renewal in 2004.

Just got my renewal notice. $712 plus tax (total $769 but aren't we supposed to be paying hst not just pst on Ontario policies? Better not ask...) for $283,000 building costs, $240,000 personal possessions (!) plus the $2 mill liability and sewer back up.

Coverage up 15%, premium up 12.6% from last year. Just over $2.51 per thousand of coverage (down a wee smidgen from last year's $2.56).

[deaddog]

Just got my renewal notice. $712 plus tax (total $769 but aren't we supposed to be paying hst not just pst on Ontario policies? Better not ask...) for $283,000 building costs, $240,000 personal possessions (!) plus the $2 mill liability and sewer back up.

Coverage up 15%, premium up 12.6% from last year. Just over $2.51 per thousand of coverage (down a wee smidgen from last year's $2.56).

How much do you think it would cost to replace your house?
I'm sure I could replace mine for less than $2.00 per square foot yet the insurance companies value the home @ $2.92 per square foot. When i asked the agent why the difference she explained that the extra was because that is what contractors charged insurance companies.

[Shakespeare]

$2.92 per square foot

So a 1000 sq. ft. home could be replaced for $2920?

[northbeach]

Coverage up 15%, premium up 12.6% from last year. Just over $2.51 per thousand of coverage (down a wee smidgen from last year's $2.56).

The only consideration regarding an increase in premiums should be inflation in the past year that would increase the cost of re-building your property if it burns to the ground. You do not need insurance for the land. If there were no renovations the inflation adjustment of 15% seems rather high.

ISTM a 1000 square foot home should cost less than 200K to build, so a reasonable premium might be 200 x $2.50 = $500.00, where the 2.50 per 1000 rate has been determined appropriate earlier in this discussion thread.

[Pickles]

ISTM a 1000 square foot home should cost less than 200K to build, so a reasonable premium might be 200 x $2.50 = $500.00, where the 2.50 per 1000 rate has been determined appropriate earlier in this discussion thread.

I agree that $200K - 225K should be sufficient to rebuild but, in Toronto, you never know. I also see that I should have deducted the $50 premium for sewer protection from the $712 before calculating the charge per $1000 of coverage. That figure is now reduced to $2.33, less than last year. I think I'm still way ahead in cost and service than if I had remained with Cooperators. I think next year I'm eligible for the claims-free 5% discount again so I'm inclined to let the rich assessment of replacement cost go for this year.