Increase in insurance

[timd354]

In other words, they want the rest of the country to subsidize the residents of CA and their poor decision to live in a fire/earthquake prone region.

CA and FL were living off of subsidies from the rest of the US. FL insurance companies are finally charging insurance premiums that reflect the actual risk of living in hurricane alley. Its time that californians start paying their own way for the risk of living in their 'paradise'.

As far as other premiums across the country....the premiums have increased due to the increase in property values and the increase in the cost of materials to rebuild.

I have State Farm; have had for 50 years. Paid $60K for this house in 1981 and premium was $600. Today its worth about $600K and the premium is only $1,500 and that includes additional riders for jewelry and firearms. I feel pretty lucky.

That's not true to the extent you think it is. Most national insurance carriers bailed out of Florida more than 20 years ago and many have stopped writing new polcies in CA. Additionally, most insurers setup separate subsidiaries in place like CA that they can bankrupt without any liability accruing to the rest of the organization if losses get too high and the state will not allow them to raise rates high enough to cover the risk. In fact, State Farm's California subsidiary just won the first "emergency" rate increase in California earlier this year after the LA area fires by basically telling California if it did not approve the rate increase, that State Farm's parent corporation was not going to put anymore capital into the California subsidiary and allow it to go under, which would have resulted in over 1 million CA homeowners losing coverage.

 

[Charles West]

I've got State Farm and so far, I think they have increased my premiums by about 20-25% which is no big deal. Of course, I maintain my stuff very well, which helps keep the premium down.

 

[Fernando]

Can't help to think that the dramatic increase in insurance is due to high risk in doing business in CA.
Are you experiencing the 20%+ increases in past few years in your state for rental properties?
It's not like I can increase my rents by 20%+.

 

[Surf Cat]

Can't help to think that the dramatic increase in insurance is due to high risk in doing business in CA.

You stated before that the insurance companies didn't like your antiquated electrical panel. Did you ask if you switch that out, that you would receive a discount in your rate?

 

[Charles West]

You stated before that the insurance companies didn't like your antiquated electrical panel. Did you ask if you switch that out, that you would receive a discount in your rate?

Hahaha

 

[Fernando]

You stated before that the insurance companies didn't like your antiquated electrical panel. Did you ask if you switch that out, that you would receive a discount in your rate?

It's a condition I had to do to get the insurance.
I have other conditions like a roof inspection to indicate no leaks because inspector saw signs of water stains on the ceiling tiles.
Tenant said A/C condensation caused the stains.

 

[Tom D]

Big urban. No flooding, no fires, no dangers. Home insurance has stayed the same low number forever.
Now big urban. Car insurance has skyrocketed. Driving around i can see why.

 

[Mark K]

Insurance is going up across the country due to the cost to re-build. House prices have increased about 40% +/- nationally with some areas higher and some lower over the past 5 or so years. Its reasonable to expect insurance rates to increase accordingly, unless you want the insurance company to insure your house that's now worth $500K with only $300K coverage. Most insurance companies won't do that and mtg companies won't allow it.

From what I've read of Nando's posts, if I had an insurance company I wouldn't cover him for any amount of $$.

 

[Fernando]

I called Geico and I gave the address of my rental.
The rep said Geico doesn't insure in that city. WTF.
I said why?
He said same badmouthing CA business increase in risk, blah, blah, blah.
My other rentals got renewed.
Sounds like redlining to me.

 

[Terrel L. Shields]

It's not like I can increase my rents by 20%+

Well....nothing is stopping you. Just because no one will rent them doesn't really matter does it?