Insurance agent here, you have to remember that over the last 4 years costs to build went up 40%. It is $200-215 a ft to build the house, no lot cost. Cost to replace and appraisal are 2 different things. Add to that the hail, wind, trees on house claims plus the company wants a 6-8% profit, 92% combined loss ratio. Now imagine this year due to California fires your losses are 106% combined. You just loss 6% so it may take 3 years to straighten that out And make any of that money back in reserves. Increase your deductibles to help and dont turn in a small claim. Also have a reputable roofer look at the roof before you turn in a claim. If he’s honest don’t turn in the claim.
Insurance Cost
- Thread starter DeeEE!
- Start date
Insurance is heavily regulated. All 50 states have an insurance department and commissioner. Insurance companies aren't allowed to adjust their rates without approval from the state insurance commission. Mississippi is one of 11 states where the insurance commissioner is an elected position (which is dumb imo).
When these commissioners don't allow adequate rate increases, insurers just stop doing business in that state. Florida and California have lost tons of insurers. That just decreases competition and thus raises rates even more (supply vs demand).
Rates are skyrocketing because of claim costs. Claim costs are skyrocketing because vehicles & homes are much more expensive than they used to be. The widespread disasters (hurricanes, wildfires) seem to be happening more frequently and in the most populated areas. Florida has added ~8 million residents since 2000. That's a lot more exposure for insurers.
Insurance companies also buy insurance. It's called reinsurance. While you might not live in a state with big widespread disasters, when they happen the reinsurance policies payout to the insurers and the reinsurers lose billions. When that happens, the reinsurers raise there rates across the board to recoup loses. So hurricanes in Florida and wildfires in Hawaii or California ultimately drive up costs for everyone.
Yep. I treat insurance like a tax. You have to have it and there's no control over where it goes. It mostly weather related. I remember leaving Texas and watching my auto and home insurance getting lowered by 80% overnight.
I always recommend if your looking at cost of living for relocation, get insurance quotes as part of the exercise. Florida and Louisiana basically have a 5% income tax that exists just to repair storm damaged homes and autos.
We moved into a house in Rankin County last April that needed a new roof. Previous owner’s insurance paid for it thankfully because of hail damage but they sent me a copy of the invoice and the roofer billed $18K. For not a huge house/roof, we are talking just under 2,000 square feet.
As a plumber, I have to carry a million or better in general liability. One thing I can tell is, find an independent agent.
Another thing I can tell you Is, “the good neighbor” and “the neighborhood” raised a lot of my customers deductibles to 8000 dollars or better. There’s no point in making a claim at that price. 17 them and 17 that. It’s straight up taking advantage of people.
Another thing I can tell you Is, “the good neighbor” and “the neighborhood” raised a lot of my customers deductibles to 8000 dollars or better. There’s no point in making a claim at that price. 17 them and 17 that. It’s straight up taking advantage of people.
I was reading your post and immediately thought, who’s the crooked bastard here that’s in bed with them? Now, I’m wondering is it that or just ignorance?
But if you have insurance and don't use it when it's needed, why have it and pay for it and never use it?
So, are the insurance companies lobbying more for stricter laws against cell phone use while driving? I would fully support this but MS is very lax on this compared to other states
Absolutely use it for msjor claims. But if you file a claim on your homeowners that’s only $1,000-$2,000 over your deductible, you may cost yourself more in increased premiums than you collect on the claim. And your insurance company may just drop you.
Another good point of this discussion, make sure you have kept up with your payouts and limits. I realized my auto was not nearly enough for as much traveling as I do. Getting that increased. Also, while shopping it they said my homeowners did not have replacement cost of items within the dwelling covered. That is a huge risk. Getting that added obviously, but just goes to show over time how important it is to evaluate and true up.
People don't like to hate insurance, they hate insurance. It's a government mandated scam.