Yes rates are up and, in some cases, egregiously.

What also is impacting home insurance as much or more than the rate is restrictions on writing new business or requoting. Insurance companies are doing all sorts of limitations to help limit their exposure: raise deductibles, only allow homes with a roof redone recently, limit zip codes, etc.

Every company is struggling and raising rates, but every company is handling things differently. I own an Independent Agency and more than happy to take a look at anyone's renewals to see what I can do:

Matt@Dimitexas.com

Emailed you

Contacted my broker to shop around and best available was +900. My carriers renewal is +220%. FML.

Prices are up but lotsa carriers are also pulling out of the region. Gotta think the recent years weather instability and so so many claims is a part of that move.

There's definitely an aspect that needs to be addressed.....I mean there are multiple posters on here who say things like if you live in North Texas and don't get a new roof every 3 years you aren't trying....

That isn't sustainable.

It will be very interesting to see how all of these factors combined affect real estate values moving forward. We all know about the interest rate issues but you add on top of that the significant tax increase many properties are seeing combined with skyrocketing insurance and it makes some homes much less attractive. We have a home on the coast that we bought as a short term rental property. In the past it has done well and the appreciation has been very good. This year we saw our property taxes go up 50%, over $9000 (it is up 300% since purchase in 2018), and our insurance go up by $3500. So we have an additional $1000+ a month just in holding costs on the property. That's an investment property so there is no protection on the property tax but when you look at single family primary residences it can be an even bigger issue. Allot of people are purchasing at the very top of their budget because their buying power is so much less than it was 3 or 4 years ago. So now you have people who purchased at the top of their price range all of a sudden having escrow accounts increasing $300-400 a month and most likely increasing every year for the foreseeable future. It is going up at a much faster rate than many folks salaries.

I am not a sky is falling type of guy and common sense tells me in most areas in Texas we still have a greater demand than supply which should keep the market pretty strong but at some point these things will start to have an effect on pricing.

I'm over 20 years dealing with clients and my personal insurance there is, or was, a pattern of increases and leveling off then competition heats up. Most of this was localized though and this seems state wide. We are at the top of the market increases so hopefully it eases up after a few years.

Got our renewal notice today. Home policy increased 300%. Added an 18yr old with a 20yr old vehicle for him. Auto policy increased 400%.
Tax bill went up 20% this time.

Those 3 items now account for $1500/month.

I hear this all the time. I feel like my wife and I do really well, I have a 14 year old truck and it's beyond time to buy a new one, but I can't imagine adding a car payment to my yearly budget when taxes and insurance are just brutal now. Salaries are def not keeping up with anything. Food, insurance taxes, my spending power is complete **** compared to 3 years ago. I don't know how people around the median income level can afford anything. Especially any kind of car payment

Rustys-Beef-o-Reeno said:

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I don't know how people around the median income level can afford anything. Especially any kind of car payment

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I say this all the time. I truly don't understand how most people afford anything at all, especially people with multiple children

Sea Speed said:

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Rustys-Beef-o-Reeno said:

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I don't know how people around the median income level can afford anything. Especially any kind of car payment

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I say this all the time. I truly don't understand how most people afford anything at all, especially people with multiple children

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3 kids and 2 daycare payments

Rustys-Beef-o-Reeno said:

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Sea Speed said:

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Rustys-Beef-o-Reeno said:

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I don't know how people around the median income level can afford anything. Especially any kind of car payment

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I say this all the time. I truly don't understand how most people afford anything at all, especially people with multiple children

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3 kids and 2 daycare payments

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Yea, same, but I have 2 private school payments now and one in MDO. Kill me.

Sea Speed said:

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Rustys-Beef-o-Reeno said:

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Sea Speed said:

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Rustys-Beef-o-Reeno said:

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I don't know how people around the median income level can afford anything. Especially any kind of car payment

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I say this all the time. I truly don't understand how most people afford anything at all, especially people with multiple children

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3 kids and 2 daycare payments

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Yea, same, but I have 2 private school payments now and one in MDO. Kill me.

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1 kid in daycare, also getting crushed on living expenses and a wife in school/working de minimus.

We should form a support group lol

Y'all keep crying I have (2) at TAMU

I'll just say 300% and 400% on home/auto definitely is not in the realm of normal. I'd be asking questions and shopping around immediately

I'm pretty sure Liere does. We've been with them for years and they're awesome!

ReloadAg said:

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I'm pretty sure Liere does. We've been with them for years and they're awesome!

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They do not automatically shop every year. You have to request it.

Good to know thanks. I'm still a huge fan of their customer service.

Orlando Ayala Cant Read said:

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Prices are up but lotsa carriers are also pulling out of the region. Gotta think the recent years weather instability and so so many claims is a part of that move.

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This is the big news in CA…some insurers are completely leaving the state. Getting insurance in remote, high fire risk, regions apparently is veery tough too. (Reminds me of the movie Along Came Polly).

Got mine today, 20% jump.

The cost of the storms over the last few years has been astronomical. I've roofed customers twice in a calendar year and also roofed the same customers I did 8 years ago. The old customers pricing on the same house has doubled. It's not unusual to have a $40,000 claim in some areas.

The pattern over the past month has been customers who were dropped by their carrier because the company left the state or they wouldn't reinsure their roof due to age. It left the customers in a bind. Fortunately for every single one, I've gotten them approved for replacement on their old carriers dime. The last one was a claim on the previous carrier that the customer hadn't been an insured on for the past 6 months. The carriers don't tell people that they can retroactively claim.

The cost of doing business and materials has gone up considerably. Couple that with claims from weather events and there is simply no way a carrier can't raise rates or leave for a cheaper region. I'm afraid this is going to continue for a while.

So what's the equilibrium? Just keep raising rates until more carriers want to be in the market? Make higher deductibles, more exclusions? I agree, keeping status quo isn't sustainable.

My dad is selling the house they've been in for 20+ years because taxes and insurance are now $3k a month. He is on the water in corpus, so high insurance is understandable, but still.....

I don't know what the equilibrium is. I think it's going to simply be the "new normal" as they say in politics. Hopefully everyone's income catches up. Until then, I don't know what stops it. Insurance is a gamble. You and I are gambling we'll need it and the carrier is gambling we won't. We've won that gamble over the past few years collectively with hurricanes, storms, hail, etc. It feels like a big Ponzi scheme. My rates cover folks in other places when we don't have claims and their cover mine when we do. The problem is EVERYONE has had claims so there is no one left to eat it.

I have a few roofs where I am still waiting to be paid because the carrier left and went under and now they have to ration out the payments. My contracts are not set up to take money from homeowners if carriers default. And they shouldn't be. So it is what it is.

I like to think if we have a few slow years then it will work itself back but you and I both know that once that premium price is accepted as OK, that's not going to happen. Plus, it buffers the carrier for the next big event.

I really just think it's going to be about the consumer making enough money to cover his expenses.

Farmers just pulled out of Florida. Will not renew or add new home policies. The insurance "crisis" is happening quickly and will have serious consequences.

Concerning the issue of non-renewal due to age of a roof --

Will an insurer quote a policy with NO replacement roof coverage?

That way, a homeowner would be protected in case of fire or if a tornado deposits their home on somebody else's lot (plus liability protection).

Hell, if I need to I'll pay for a new roof I'll do it just like I do for any other type of major expense. It seems with roof depreciation and deductibles being what they are insurance is not doing that much for me anyway.

Asking because I just got a non-renewal on an old farmhouse out in the country. No explanation was given, but I'll be calling the agent to figure out what is going on. It's Texas Farm Bureau, BTW, and there are companion policies as well that didn't receive the same treatment.

Are there any public datasets on the type of claims that the insurance companies are paying out?

TriAg2010 said:

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Are there any public datasets on the type of claims that the insurance companies are paying out?

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https://www.iii.org

The data is behind a year or so, but in 2020 here are the causes or property losses:

1. Wind and hail - 45%
2. Fire and lightning - 23.8%
3. Water damage and freezing - 20%
4. Theft - 1%
5. All other property damage - 8%

200% increase in the last 2 years. 40% this year. It's disgusting.

So I'm curious:

Homeowners + prop tax = what percentage of your home's appraised value?

My last appraisal was done in 2021 at a refi, so I'm just using that number.

For me it's 0.62%

I'd be curious to know how that stacks up across the state of TX.

Where i live you have home, wind and flood policies

2.58%

Barf. Ok. I'm sorry.

Probably should link it to market value (or insurances replacement value).

Appraised value is somewhat arbitrary.

I had singed a Travelers policy on a home in Montgomery County and paid in full. They canceled after 3 months and sent me the refund for remaining 9 months. Stated reason was they don't write policies for >$1MM homes in Type II wind areas. I guess the person who wrote it missed something or the value just crossed the $1MM mark.

I just got a policy from Farmer's for $1950 with a replacement cost of $750,000 and 5% deductibles. I think that's a good price considering things today. I was just about to say screw it and self insure (house is paid off) when getting quotes over $4000.

Actually, the policy I want to buy would be a stated maximum repair value of $500,000, 5% deductible and $1MM personal liability. I would pay out of pocket for any loss that exceeded $500,000. However, I can't find any insurer who will write a policy Luke that, at any premium amount. The "customer is always right" montra is BS in this case, because they are telling me as a customer to F off. Why can't I get that policy? At least work up a big premium and let me decide yay, or nay. But, nope, I can't even get that.

Similar BS that made me decide to self insure my lakehouse. The water front lot is worth more than the house, but insurers want to cover the entire appraised value like the whole lot is going to fall into the lake during a hurricane or a fire. WTF? No, just cover replacing the house, you idiots. But they refuse to cover a property that way. There must be a regulation or cartel controlling this scam somehow.

Win At Life said:

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I was just about to say screw it and self insure (house is paid off) when getting quotes over $4000.

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You know, I've toyed with this idea as well, as my homeowner's policy will 'renew' in the fall and I'm sure they'll hammer me about the age of my roof, even though it has 40-year shingles on it (I'm 30 years in but the roof is still in serviceable shape).

But, (assuming you had decided to self-insure), what would you do for liability protection on the property. That's the type of thing that concerns me the most, I suppose. Who writes a separate liability policy for a homestead?

Also, I wouldn't fancy picking up the entire tab if my house burned down or got blown away. I'd like some super-catastrophic protection.

But roofs? Hell, I'll pay for those just like I would any other major expense.

I've also started poking on "catastrophic coverage" only but not getting positive results. Seem they will go up to 5%/2% deductibles but nothing more than that…and the policy doesn't lower very much.

Policy renewal just doubled.
Property taxes will go up 10% capped.
Utilities are nuts.