Homeowners Insurance - who do you use? How much do you pay yearly?

[jerseygirl07067]

We live in FL and currently have State Farm. They are getting very expensive. Our rates have almost doubled over the past 4 years, despite us never having had a claim on our home.

We have had a few small claims with them over the past several years, one minor on our auto, and two claims on my ring, which is covered under a separate personal articles policy. They were so easy to deal with and hassle free to deal with. So I'm leary about switching companies. But it is getting expensive.

In Florida, they have been threatening to pull out of the state and no longer write homeowner insurance policies. I guess they have had to make many payouts over the past several years due to hurricane damage, particularly the doozy of a year we had in 2004 when there were four that came right through central florida. Last year, they petitioned for a 30% insurance rate hike and it was granted, so for now, they are still in FL, but with ever increasing rates.

Who do you have? How much do you pay a year? And if you ever had to make a claim did they come through? I have friends who have these unknown small insurance companies and they pay much less, but I wonder if they will have difficulties should they ever have to make a claim

We would also consider bundling our auto together too, to save money.

[Penny's Pappa]

We use State Farm for all of our property insurance -- the house, 2 cars, and some personal articles (mostly our wedding rings). We've had them for years and never really had a reason to switch, so I haven't felt the need to do a bunch of comparative shopping with other companies to see if our rates are competitive. We currently pay ~$450/year with a $1000 deductible. We get nearly $200 in discounts for insuring our cars through SF as well as for having little claim history.

[jerseygirl07067]

Wow, $450 a year? We are now paying almost quadruple that. We were paying about $800 a year initially, and it is now up to almost $1600 a year for our homeowners alone.

We already have discounts for everything being bundled together.

[dhano923]

We're also with State Farm and pay a little over $1300/year. We also have our auto and my life insurance with them and get a discount. When we bought our house, I got quotes from a couple other companies and they were comparable. Haven't had to file a claim yet.

[mommylamb]

We use Ameriprise's insurance company because we have an Ameriprise financial adviser and have most of our savings and investments with Ameriprise. They give you an additional discount if you have an Ameriprise financial adviser. I recently thought I would look into changing, and I called State Farm to see what the cost would be. State Farm wanted to charge me about $700 more (for car and auto) than what I'm currently paying for car and auto with Ameriprise for the exact same coverage! I'm not sure if Ameriprise is just cheaper or if it's because of the discount we get for our financial adviser. I didn't even bother calling other companies because I think it might be a waste of my time. I'm not sure it really helps you to hear what other people are paying because of course homeowners insurance cost really depends on your particular house and the area where you live.

Florida though has got to be the worst place to be for this. You're lucky you can even get State Farm there, because they won't cover so many residents who end up having to rely on Citizens, which isn't adequately capitalized from what I've read.

[MSWR0319]

We had SF up until last week. We had to file a claim when our pole barn got broken into while we were building our house. They covered all the tools, but REFUSED to cover the 4-wheeler. Claimed it had to be listed on the on the policy separately. We had just had our yearly review with our agent and had gone through what was in the barn. Not once was anything mentioned about the fOur wheeler being a problem. Needless to say, that left a bad taste in our mouths. We finally got around to researching insurance and just switched to German Mutual/Heartland. We actually found out SF wasn't covering us as well as we should be and that our HO would only cover $2000 in damage should the sump pump quit working or pipes back up and ruin the basement. That wouldn't even cover replacing our Geothermal! And every other insuramce company covered up to $1000 in 4wheelers no questions asked, so that would have been covered. So we ended up with better coverage for maybe $100 more, but we also added an umbrella policy, earthquake insurance, and additional liability on cars. My PSA to everyone is to review your insurance regulary with someone outside of the company or at least by yourself!

[ThreeofUs]

We have Allstate - we requote every few years and they have always been the most competitive. But we're in a brick century home (very expensive to rebuild) in a fairly high-risk area (because of the old infrastructure), so there are only so many insurance companies that will insure our home and cars together. We pay about $1K/yr.

[wendibird22]

We have SF and bundle our 2 cars and home together. We pay about $450/yr.

[lowrioh]

We have Erie Insurance for both our home and auto policy.
Our homeowners is $901 per year. We live in a 1960's split with ~2800 sq ft that is valued at around $375K. Our car insurance is really high though because we live in a county with a high auto theft rate.

[Penny's Pappa]

Wow, $450 a year? We are now paying almost quadruple that. We were paying about $800 a year initially, and it is now up to almost $1600 a year for our homeowners alone.

We already have discounts for everything being bundled together.

Yes. I was a little shocked when I saw the number myself (though I really had no point of reference), but that's what it is!

[KrisM]

It's going to vary a lot by type of house, age of house, size of house, etc.

But, we pay $700/year for a 2200 sq ft house that's 13 years old and insured for $265,000. It's through Liberty Mutual. Last year, we paid a lot more and I got quotes this year from other places and discovered we were way overpaying. Tons. Turns out, I have to ask for a "requote" every 3 years to get them to start fresh and then we saved $500 or so. Crazy and I am planning on switching because it makes me so mad.

[ohsara430]

We have State Farm, have for quite some time (different houses too). we shop it around every few years but SF still is best for us. DH works for a competitor insurance company and knows quite a bit about coverages and things so I let him handle it completely.

Just know that when you shop around you may be comparing apples to oranges. Coverages are not all the same and if you work with an agent make sure it's a reputable one who actually knows their stuff - what coverages you need, what you're getting, etc. Lots of factors go into determining the rate such as geographic region, age of house, size of house, other characteristics of property, etc. Some companies also undercut the competition on rates to get your business and then raise the rates quite a bit and hope you won't switch so keep that in mind while shopping around.

[almostmom]

Do you have anyone who was in the military in your family? If so, check out USAA. They are great. We had a lot of property damage this winter due to snow, and they have covered all of it, with a $500 deductible (work will be about $15K).

[BillK]

I just switched our insurance from one of the companies I represent to another one I represent - Encompass (who is actually owned by Allstate but still operates totally independantly from Allstate).

Encompass writes 1 policy for everything - home, auto, umbrella, jewelry, boats, rental properties, secondary homes etc etc. which is very nice - 1 deductible applies if you for example have a claim where a tree falls on your garage and damages your vehicles too - normally you'd have a deductible on the home and a deductible on each car - with Encompass - you just pay 1 deductible in that instance.

Anyway - our Home ($264k - $1000 ded.), 08 Sienna, 03 Yukon (high liability limits, $100 comp/$500 collision), $1,000,000 umbrella - total annual premium is $1,867/year. $1,106 of that is auto, $645 is home and $116 is umbrella.

If you're near an agent that sells Encompass Insurance it may be worth a look - great rates, great service - coverages are much much higher than most competitors (except maybe Chubb or Firemans Fund).

www.encompassinsurance.com (http://www.encompassinsurance.com) has a nice agent locator.

Also - don't be afraid of "smaller" companies - there's a lot to be said for personal service from a smaller regional insurance company. There are LOTS of excellent smaller companies that lots of folks have never heard of - around here we have Mutual Benefit, Westfield, State Auto, Cincinnati Insurance, Donegal etc etc - any of which I'd put head to head against the likes of State Farm, Nationwide etc when it comes to service and claims.

[ECMom]

Also - don't be afraid of "smaller" companies - there's a lot to be said for personal service from a smaller regional insurance company. There are LOTS of excellent smaller companies that lots of folks have never heard of - around here we have Mutual Benefit, Westfield, State Auto, Cincinnati Insurance, Donegal etc etc - any of which I'd put head to head against the likes of State Farm, Nationwide etc when it comes to service and claims.

Bill, do you know anything about Homesite? We recently got a homeowners quote from them through Geico. Never heard of them before and can't find too much on them, which makes us leary to switch. Will definitely check into Encompass too.

[BillK]

All I know of Homesite is they're out of Boston and AM Best rates them A- (which is a good rating) and they have agreements with both Geico and Progressive to provide homeowners to their customers.

I am pretty sure it's a pilot program in a few select states for both Geico and Progressive so I'd be somewhat leary of it. I know a few years back Progressive tried the homeowners thing in Arizona and it was a collosal flop and they ended up terminating it and sent out non-renewal notices to all their home customers.

Of course - I don't have much use for Progressive or Geico either - since they're directly competing with me - so my opinions are slanted toward doing business with a real live agent you can go sit down with and talk to if your house burns to the ground - vs. having to call a 800 number.

Luckily in my 14 years owning this agency I've only had 2 total fire losses and 1 major fire loss (would have been easier if it would have just burned entirely) - and I can say with confidence that all 3 property owners appreciated the fact that I was actually there with them while the properties were all still on fire or smoldering.

[MaiseyDog]

If it makes you feel any better, I'm in Mississippi and my homeowners insurance is with State Farm as well. We pay $1200/year with a $1000 deductible on a 1650 sf 10 year old home. This is with the multi policy discounts. Mississippi has got to be the worst place in the universe to try and get homeowners insurance. Due to hurricaines, tornados, floods and general insurance fraud, very few companies will write policies here. State Farm no long write new home policies, but we had renters insurance prior to them pulling out so were able to roll it over to homeowners. We looked around a few years ago and everything we looked at was fairly complerable for the same level of coverage. State Farm was slightly more per year, but we've always had great service from State Farm so we decided the small savings weren't worth the switch.

[boolady]

Well, our homeowners' insurance is around $450 per year on our 1,400 sq foot townhome, but I'm in NJ, and our auto insurance, which is with the same company, is through the roof. It's ridiculous, really.

[kbud]

We are in FL also. We have American Strategic Insurance. We went through AAA and that's who they came up with. It's about $700/year. We are considered in-land (about 15 miles from the coast). We also have new construction (built in 2007) so that was a huge discount as our house is up to date w/the latest hurricane building codes. I just checked around and got a quote for about the same through Ark Royal Insurance Company. I believe they are connect with American Strategic. I haven't found any insurance companies who do auto and home in FL. They are slim to none. I know American Strategic is rated high. It's nearly impossible to find a well-know homeowner's company in FL. Most of them have pulled out.

[SpaceGal]

We're with MetLife, pay about $360-370 for our 2100sq ft two story house. My car ins. is also with MetLife and I believe that is about $370 as well...all discounts and what not applied. Plus it's deducted through DH's pay check...well the car ins. part that is...the home ins. is through our escrow.

[Trigglet]

Mississippi has got to be the worst place in the universe to try and get homeowners insurance. Due to hurricaines, tornados, floods and general insurance fraud, very few companies will write policies here. State Farm no long write new home policies.

:yeahthat: except substitute Louisiana for MS - our homeowners is 1700 per year after multipolicy discounts on a 1400sq/ft cottage built in the 30s. It's really obscene. When I told State Farm that I didn't want to renew I got the agency owner on the phone 'warning' me that I wouldn't get hurricane coverage with any other company. So, I chickened out and stuck with them, because they're not writing new policies so if I switch I can't switch back later. Anyone in LA who gets reasonable homeowners rates? We pay about 1200 a year for auto as well, it's really painful. :irked:

[marymoo86]

I have Amica Insurance - homeowners is $500 with an umbrella policy attached on a 2000 sq ft home. As it is a mutual company I get a dividend back too. $1k deductible and never filed a claim.

[ahrimie]

Wow, I'm really surprised at how cheap some of your policies are. We have Liberty Mutual. I shopped around after our first year and still, this is the best price every year. Our house is 3500 sq ft and we pay $1500 with a small discount because I got it through my previous employer. We haven't made any claims yet.

[secchick]

Holy cow! Ours is $3K for our house built in 2009 that has all the new home, security, and fire sprinkler system discounts. They always say we have some of the highest ins rates in the country and I definitely believe it.

[GvilleGirl]

We have USAA as well, but I am almost positive they don't insure Florida unless you are stationed there. Great rates if you can get it.

[vludmilla]

We have a $5000 deductible and we pay about $1000 a year (I think).

[AngelaS]

Ours just recently jumped by $200 a year and we haven't had any claims! I need to find someone new. Grr.

[Moneypenny]

Ours just recently jumped by $200 a year and we haven't had any claims! I need to find someone new. Grr.

I'm in the same state as you and ours has been going up by about 10% each year for the last few years. We called our agent and he said it was because all the floods the past couple of years have increased claims. Even though we haven't had any claims, it affects us all.

We did a major shop around last year and couldn't find anything better so we stuck with American Family, but I'm still grumpy about it.

[mommylamb]

I'm in the same state as you and ours has been going up by about 10% each year for the last few years. We called our agent and he said it was because all the floods the past couple of years have increased claims. Even though we haven't had any claims, it affects us all.

We did a major shop around last year and couldn't find anything better so we stuck with American Family, but I'm still grumpy about it.

Floods? Private insurance companies don't cover flood damage, so this shouldn't be the reason. Flood insurance is only offered by the government.

[bcafe]

Another Wisconsinite here and ours has been jumping up alot over the past few years. We were with Sentry, but the rates were ridiculous. We are now with Progressive. West Bend Mutual is supposed to be a great local company.

[HIU8]

We also have Erie. We pay $1200/year (out of the escrow account). We have a split lvl built in 1970 -2364 sq. ft.

[mypa]

We have AAA and even with every discount applied we pay about 1200 for Home and Earthquake and another 1200 for 2 cars.

[ssjarrett]

You might give your local Farm Bureau Mutual Insurance Company a call--you don't have to have a farm to use them! You do pay an annual membership fee of about $25 I believe. They've been our best rates on homeowners in both VA and GA. Very easy to file a claim when we had hail damage to our roof.

I have Amica for our vehicles and they have been excellent as well.

It was cheaper to use different companies for us.

[BillK]

Floods? Private insurance companies don't cover flood damage, so this shouldn't be the reason. Flood insurance is only offered by the government.
Not true - many standard companies offer flood - the losses are underwritten by FEMA/NFIP but you can still buy the flood insurance from any number of companies that participate in it. Here at my office we use Selective Insurance for the flood policies we write.

[Moneypenny]

Floods? Private insurance companies don't cover flood damage, so this shouldn't be the reason. Flood insurance is only offered by the government.

Sorry - should have been more clear. It's basement flooding due to heavy rains/storm sewer backups, etc. We can get special riders for basement flooding (we have one and used it in a previous house many years ago when the storm sewer allowed 3 feet of water up through the drain.)

ETA: I'm also not saying I really believe what our agent told us. He had no explanation at all for why our umbrella policy has also gone up 5-10% for the last several years. Like I said, last year we shopped around to several other companies and even had an independent agent write us a quote, and they were all very close so we stuck with our current provider.

[jerseygirl07067]

Great info everyone! Bill K, it looks like you're an independent agent? How would I find out which are some of the better smaller companies in FL? I always was leery of them, but it might be an option based on your experience with many of them in your area.

I do have a friend who uses Amica. She said something that you have to be referred by someone? Her dad has used them since he was in his twenties, he's now close to 70.