So I had my homeowners insurance ask for some details and proof of roof replacement. They sent an email asking on the 18th to my agent. Agent sent it to me on the 19th. I missed that they wanted it by the 23rd and sent it over on the 27th. They've already canceled the policy.

Is this normal or were they just looking for an out. Seems like absolute BS to cancel for wanting a response in 3 business days the week of effing Christmas.

Red Pear Realty said:

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Almost every single insurance company is looking to get out of the insurance business in Texas, California, and Florida. We've got a real problem on our hands, folks. If it hasn't affected you yet, be grateful, and know that it will.

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Here is a link to a podcast highlighting the issues. This talks about Florida mostly but the impacts would be similar here in Texas.

The system is broken and insurance companies aren't going to be the payment plans to get us back on track. So you either have the government step in and bailout or there are no bailouts after the next Hurricane Herman or Wild Fire strikes.

And just like we saw in Hawaii or North Carolina, we can't get $10B in Federal Funds to help them both Notth Carolina or Hawaii out and their citizens. But we can find the federal funds real quick to study Cocaine effects on the mating habits of Japanese Quails (actually a true story…. Wish I was joking)

#4 — 999,500 views 👀@friedberg reveals the devastating state of homeowners insurance in Florida, as stronger hurricanes increase in frequency... pic.twitter.com/0yRB4mU7Ot

— ALL-IN TOK (@all_in_tok) January 1, 2025

canadianAg said:

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So I had my homeowners insurance ask for some details and proof of roof replacement. They sent an email asking on the 18th to my agent. Agent sent it to me on the 19th. I missed that they wanted it by the 23rd and sent it over on the 27th. They've already canceled the policy.

Is this normal or were they just looking for an out. Seems like absolute BS to cancel for wanting a response in 3 business days the week of effing Christmas.

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Your story is interesting to me.

I received my renewal statement via email on Christmas Eve. Given the current state of insurance and general ill-will towards the industry, it was annoying to me. Plus, in the "olden days", a paper statement wouldn't have been delivered on Christmas Eve, so why send an email at that time?

I posted about it on the business board, and am getting a little roasted for being annoyed.

But, when I got my statement, I did wonder what other important information are insurance companies delivering over the holidays - you answered my question.

It's just awful all the way around. The insurance didn't even contact you directly in writing - you had to rely on your agent to forward you the email, and the agent wasted a day. Did the email you received clearly state that your policy would be cancelled if you didn't respond by the 23?

I'm not sure it will make a difference, but maybe file a complaint with the TX Department of Insurance. "Respond in three days or we cancel your policy" sounds more like a threat/extortion than a reasonable request for information.

Well after the bullet list of information they wanted, they had about 6 returns and had one final sentence asking for response by the 23rd to avoid adverse underwriting action.

Admittedly it's my fault for not reading it entirely, but still seems shady.

Seems like your agent should have highlighted/emphasized the deadline when he/she forwarded you the request.

As an insurance broker in Texas, it has been a tough market. What city are you located in?

I just knocked mine down from $6100 to $3500.

PM me if you'd like my agent and phone number.

Nm

I'm seriously considering dropping mine, or just having some kind of catastrophic coverage in the event of a fire.

Got hit with the big increase this year. Just reworked ours way down by going to 2% deductibles. Basically as close to self insurance on a million dollar asset as I want to get.

Deats99 said:

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Got hit with the big increase this year. Just reworked ours way down by going to 2% deductibles. Basically as close to self insurance on a million dollar asset as I want to get.

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A lot of my clients are going there or, when they finally pay off their house just going the self insurance route.

My neighbor and I tend to be roughly the same rate 6 months apart, both have sagesure. He just got his renewal for 8k. Mine isn't coming due until June but I am sure its about to be a slap to the face. When we moved in June 2018 my quote was just over $1500, its currently $6500, and looking to jump to 8 soon. Wild stuff.

canadianAg said:

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Ya I've been using goosehead and have been less than impressed. They were just going to let my renewal go through for double the premium until I called raising hell.

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Closing on the 24th on a new house. The goosehead rep offered me a deal that was $1,500 a year less than safeco. When I started looking at the deal, I noticed that the price difference on the policies was $250,000 and the deductible was also different.

Didn't even bother calling Goosehead back after that horrid mistake and stayed with my guy at Safeco.

seems like there's about 3 insurance companies writing policies on older homes at this point in Texas.

MIght as well just call SageSure and bite the bullet.

Is there a way to only pay for coverage on a total loss (i.e. fire or tornado) and just self insure the rest? I could eat a new roof or a flooded kitchen or something like that.

A basic home policy would do that. You would want to insure your home for the full value to meet coinsurance requirements for a full loss but would cash pay any other loss.

High deductible

Ive mentioned this before but Ive been running 5% deductibles for a number of years now. I also havent experienced any of the heartache concerning insurance companies. I assume the high deductibles keep me off their radar and keep cost down. My policies were running $400-$600 per property 10 years ago. And are running $600-$800 now. Houses mostly in the $225k- $250k range. Ive never had a single question asked about roof age, trees, or anything else. Policies are with Travelers and USAA. Could be wrong but Im guessing that anyone willing to accept a 5% deductible will likely find their options go way up and cost way down.

Are your homes mortgaged or owned outright? Lenders cool with the 5% deductible?

Last time I checked and it's been several years 4% was the maximum my lenders would accept.

Red Pear Realty said:

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Are your homes mortgaged or owned outright? Lenders cool with the 5% deductible?

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Only one I can remember checking on it was prosperity bank. And they didn't seem to do a good job keeping up. I've never gotten anything from wells fargo, PHH, CU members mortgage, or Midsouth/ Hancock Whitney.

SteveBott said:

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Last time I checked and it's been several years 4% was the maximum my lenders would accept.

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How do you know what the lenders will accept? I just looked at the Deed of Trust on one of my properties and it doesn't specify just has language that the lender needs it to be acceptable and what is acceptable can change at any time. I guess you just call and ask?

It was a purchase so I contacted the underwriter for the loan. So it could have been a lender specific rule.