Return to the Buying and Selling Homes Forum | Post a Follow-Up

 o
Home owners insurance premium went up after sale

Posted by dazzlemewithcolor (My Page) on
Fri, Dec 31, 10 at 12:47

Has anyone experienced this? We bought a house and received quotes from several companies for our home owners. They all pretty much came very close within each other but we decided to go with Travelers since we would get an overall discount if we combined our auto policy. After a month I get a letter stating that they are increasing our premium almost 30%. I'm shopping for new insurance the beginning of the year, but wanted to know if anyone has had experience with this.

Thanks


Follow-Up Postings:

 o
RE: Home owners insurance premium went up after sale

We also have Travelers. We rec'd an almost 25% increase in our premium for 2011 with a very disproportionate increase in coverage. Our agent confirmed with Travelers that they had an across-the-board increase in premiums with all of their policies for 2011. We also have Travelers for auto and a personal umbrella policy.


 o
RE: Home owners insurance premium went up after sale

Allstate did too on auto insurance. Across the board, agent could not/would not explain why.


 o
RE: Home owners insurance premium went up after sale

All insurance companies do this after a year or two. They say otherwise in their advertising but they don't follow through. Sadly the only way to keep your premiums down is to have to change every 3 or 4 years.

Insurance is a scam.


 o
RE: Home owners insurance premium went up after sale

orvl, unfortunately it hasn't even been a year, it's only been two whole months. I'm shopping...again!


 o
RE: Home owners insurance premium went up after sale

For what it's worth I currently have Hartford. We used to have Travelers.


 o
RE: Home owners insurance premium went up after sale

orv1, thanks. I will check them out too.


 o
RE: Home owners insurance premium went up after sale

State Farm here (policies in WI and IL)--no increases so far!


 o
RE: Home owners insurance premium went up after sale

I have had them both increase and decrease.

The initial binder (needed for settlement) was based on rough calculations.

A more accurate insurance assessment of the house was then performed and the rate adjusted.

I have gotten refunds a few times.


 o
RE: Home owners insurance premium went up after sale

I understand that after the assessment that there will be some adjustments, but a 30% increase just sounds ridiculous to me.


 o
RE: Home owners insurance premium went up after sale

"...a 30% increase just sounds ridiculous to me."

Did they identify a reason?

Call the agent and ask.

They may have seen something specific.

I had an insurance company make an issue of a weather-head on a house not being attached correctly.

The traveler holding up the wires was solid, but the weather-head appeared to be not snug to the wall from the ground.

In Virginia they are POCO responsibility, so I called them out.
They just pushed it tight against the brick wall and left.

Problem solved.


 o
RE: Home owners insurance premium went up after sale

brickeye, it sounds ridiculous to me because they said that it was we are under insuring our home at the original quote and now this new premium is the 'correct' quote. There is no particular reason or something that we can address and fix like you were able to. I have already spoken to several local offices and their quotes are what Travelers originally quoted me. So, needless to say, I am going to be switching. I know that if we had a total loss it would not cost what they are claiming it would to rebuild in my area. They are nuts!


 o
RE: Home owners insurance premium went up after sale

If they cannot explain why the rate increased I might cancel the policy even with the built in penalty they charge (usually a few percent).

The binders I have gotten have always had language about 'subject to change' for the cost, but when it has changed they have had an explanation.

One house was not "consistent" in its quality with the price, while another had very expensive interior trim not normally found on newer houses (it was a house from the 1880s).

The 'average cost' guides are just that, average cost.

While the bank may want a policy based on the mortgage value, I have had them back down if you have a 'rebuild' type policy and a high land value (about 80% on one) since excess insurance is a real red flag for risk.


 o
RE: Home owners insurance premium went up after sale

I had Hartford. Had a lot of problems with them and canceled our policy. We had them for years and the rates kept going up. We had an incident where lightening struck our cable line outside the house. It blew out our tv's and computers.

Hartford gave us such a hard time with this I would never recommend them. They refused to give replacement value on a large 55" TV, which was only 5 months old. Forced us to get it repaired rather than replacement value and it took forever. Even worse with the computers. In all we had 5 TV's burned out and 3 computers. They refused to replace anything.

The poster above me must be spam.

Jane


 o
RE: Home owners insurance premium went up after sale

So you got a quote based on information you provided including the square footage that you probably got from the listing. Once the application was bound and evidence of insurance supplied to your lender an inspection of the property was performed by your insurance company. They came up with something different than you originally were quoted with. If you have your appraisal from your lender, check the cost approach and look at the cost of replacement and compare that to the dwelling coverage you currently have. They should be relatively close. You can shop, another inspection by another insurance company will be done and they may actually come up with yet another number. If you don't agree with your insurance agent, provide the appraisal so they can compare. The inspectors do make mistakes, I've even seen them do the wrong home. Heck, my inspector did my neighbors home.


 o Post a Follow-Up

Please Note: Only registered members are able to post messages to this forum.

    If you are a member, please log in.

    If you aren't yet a member, join now!


Return to the Buying and Selling Homes Forum

Information about Posting

  • You must be logged in to post a message. Once you are logged in, a posting window will appear at the bottom of the messages. If you are not a member, please register for an account.
  • Please review our Rules of Play before posting.
  • Posting is a two-step process. Once you have composed your message, you will be taken to the preview page. You will then have a chance to review your post, make changes and upload photos.
  • After posting your message, you may need to refresh the forum page in order to see it.
  • Before posting copyrighted material, please read about Copyright and Fair Use.
  • We have a strict no-advertising policy!
  • If you would like to practice posting or uploading photos, please visit our Test forum.
  • If you need assistance, please Contact Us and we will be happy to help.


Learn more about in-text links on this page here