Increase in insurance

[Fernando]

My renewal insurance for my duplex came in and it increased $1,000, that's like over 56%. WTF!
Same insurance I had on another rental which had a claim few years ago. Do insurance company penalizes me for that on another property insurance?

 

[ITVSME]

Loss history follows the policyholder, it's not isolated to the subject property.
Your premium increase shows the combined impact of higher replacement cost values and higher rates.

 

[KHS445]

My renewal insurance for my duplex came in and it increased $1,000, that's like over 56%. WTF!
Same insurance I had on another rental which had a claim few years ago. Do insurance company penalizes me for that on another property insurance?

As stated by ITVSME loss history follows the policyholder and keep in mind cost of repair/replacement has changed over the last couple of years, exasperated by increasing real estate values. It would also be typical that the insurance company inspector has viewed your property and made a determination as to condition, maintenance issues, liability issues, material storage, external risks based on the location, etc.

You can reduce your premium a bit by reducing your coverage but be very careful and understand the full impact of becoming a co-insured with your insurance company. For instance, if you reduce your coverage to 80% of what the insurance company recommends, you will have to cover a minimum of 20% of any loss, plus your deductible.

I would set up a meeting with your insurance agent, make sure they are a commercial agent/agency, to go over the insurance coverages on all of your properties and ask for any recommendations as to how you can reduce your premiums or maintain your premiums and improve your coverage. Your agent is receiving a commission to handle your insurance coverage, let them do a bit more work than sending you a renewal invoice. I schedule a sit down with may insurance agent every year to go over any changes in the law, policy, property, personal circumstances and to come to an agreement on what type and amount of coverage should be secured for the next year.

 

[Mark K]

My renewal insurance for my duplex came in and it increased $1,000, that's like over 56%. WTF!

I realize that this is a complex problem, one you seem unable or unwilling to understand, but insurance is basically 'shared risk'.

Your increase will help pay for those wildfire claims for people not smart enough to live in areas unaffected by recurring fires.

Also, if you've filed a claim recently, all of your policies will reflect the claim.

Enjoy Newsomland.

 

[Charles West]

I can't wait till this Southern California fire
disaster percolates through the insurance companies. I am looking at a 30% increase if approved through State Farm as it stands right now. God only knows how many billions the claims will be.

 

[Fernando]

I realize that this is a complex problem, one you seem unable or unwilling to understand, but insurance is basically 'shared risk'.

Your increase will help pay for those wildfire claims for people not smart enough to live in areas unaffected by recurring fires.

Also, if you've filed a claim recently, all of your policies will reflect the claim.

Enjoy Newsomland.

I put a new roof last year. No more leaks and this is the thanks I get from the insurance company. Maybe I should tell them.

 

[Fernando]

Come to think of it, my property does have a major depreciation looking from the street. Maybe insurance inspector drove by and saw the hazardous condition.
And looking at Zillow, I should fix that slanting gutter drain. And.....

 

[Mark K]

I can't wait till this Southern California fire
disaster percolates through the insurance companies. I am looking at a 30% increase if approved through State Farm as it stands right now. God only knows how many billions the claims will be.

Just like FL and the hurricanes. Insurance costs are driving some people from that state. From what I've seen and been told if you want total coverage for your house it is running between 1-2% of the home's value. Its either that kind of increase or the insurance companies will be leaving CA for good.

 

[Charles West]

Just like FL and the hurricanes. Insurance costs are driving some people from the state. From what I've seen and been told if you want total coverage for your house it is running between 1-2% of the home's value. Its either that kind of increase or the insurance companies will be leaving CA for good.

We aren't near 1-2% yet, but it wouldn't surprise me if premiums don't nearly double.

 

[Fernando]

Appraisers and Insurance companies should be aware of areas more prone to hurricanes or wildfires.
My properties are not likely to be near wildfires and insurance companies shouldn't take advantage and jack my rates.
I was in Malibu two years ago and I drove through the mountains to get back to Burbank.
Those neighborhoods that got burnt were in middle of forestry. I don't like to live in areas surrounded by unmaintained trees.
With history of high winds in that area, it was bound to have a major disaster.
I was at the Getty Villa and good thing they maintain fire prevention landscaped. Thus, Getty Villa didn't burnt to the ground.

I was in Maui few months before that neighborhood got burnt. Dense neighborhood.
I stayed at the Hyatt Maui resort nearby and no wildfire problem there.
Proper planning and proactive fire control could have lessened the damage and lost lives.