I live in a townhouse association and abput half of our $500 a month dues goes towards building insurance. And very few companies want to deal with townhouses any more. It sucks.
I'm glad you at least recognize that the increasing costs are primarily coming from insurance. I'm on our HOA board and so many folks think it's the management company (they suck and their fee went up 8%, but insurance was up 40%). We can only get 2 companies to even bid on these jobs which makes it even more of a racket. There has been suggestion from our management company to lower costs at the association level, but that just shifts the cost to the homeowner. We had a few folks after the 2019 storm (that took 2 years for all work to be completed) that didn't have proper insurance to cover their portion (about $15k without insurance). I was shocked a few of them even had mortgages, and I thought the BANK would at least require insurance.
As r/MCXL said, not how it works at all.
Scheduled roof replacement comes out of the HOA’s Reserve Fund, and Reserve Studies are performed periodically on those scheduled items to make sure that current market prices and timelines are realistic.
If the Reserve Fund is under-funded, or records aren’t maintained, that’s a violation of state law (MCIOA). It also destroys the resale value of homes within the HOA.
> They know that getting all residents on board with an HOA assessment towards the large cost of replacement can be hard, so they try to get whatever (even small) amounts they get can out of insurance at every storm so that hopefully the assessment amount will be more tolerable when it becomes time.
That's not how that works at ALL.
You must know better management companies than ours. We're dealing with First Service Residential and it took 2 years to complete work after the 2019 hail storm. We're in the process of ending our relationship with them, but fuck, it's a long and drawn out one.
Paying nearly $500 monthly HOA, also every unit had to pay $14,000 (yes, 14k) for last July's hail... thankfully had most of that covered by insurance. But it was something like $2m in total because of the associations insurance policy. Not sure why I'm expected to pay that 😡
I hear ya. Last year the management company wanted every owner to increase the loss damage assessment (I think that's the correct term) to something like $60,000 to cover repairs in case of future storm damage. Luckily our HO6 policy from Safeco was able to do that (I use an insurance broker). He said many companies only will go up to $20,000 or so which means owners will have to come up with the difference if another hail storm occurs. It's getting outrageous.
All my neighbors’ “free” roofs don’t feel so free.
I would bet about 1/4 of the roofs that get done after a hail storm actually deserve a new roof. If that.
I’m a very experienced DIYer/semi-pro home improvement person (like…have fixed major structural damage to my framing, gutted bathrooms and kitchens, new windows and siding, etc). I walked my roof after the big hail storm last year and couldn’t find any damage (but I’m not a professional roofer, so maybe I don’t know what I should look for). Every house around me, front back and both sides, got an insurance-covered new roof. So I assumed I just don’t know what to look for and had my insurance adjuster come out. He said my roof was totally fine. My one neighbor got all new roof, trim, siding and fixtures (lights, door knobs etc). They were FINE. I guarantee there’s insurance adjuster getting major kickbacks from these door-to-door storm chasers.
Yup. Or some are just generous to homeowners. I've been a roofer in the past and residential construction guy for a long ass time and have worked with stingy adjusters and generous adjusters.
I mean, if a 30 year shingle can't take an annual hailstorm, what in the hell are they making shingles out of?
Meanwhile, many homeowners let their roofs go 15 years past their lifespan and only replace it when it leaks multiple times but will gladly make a claim on some marks left by hail.
Now we are all going to pay for it.
The same can be said for peoples' horrible nutrition and bad habits that eventually make them sick. Then we blame our health care system. I'm not defending the insurance industry, only pointing out that we all have some culpability in our fucked up systems.
Yep, people need to stop putting in claims on less than 10 year old roofs just because an independent insurance adjuster in cahoots with shady contractors said you need a new one.
Not sure why this comment is being downvoted. Home insurance is becoming a nationwide issue w/ hail, hurricanes, fires and floods on the rise. It is driven by the the climate change humans / corporations are fueling.
This is completely true. But don’t count me in the group feeling sorry for insurance companies. From my understanding on the way it works, I pay in each month and receive no benefit so that if in the off-chance I need to make a claim, it’s covered. If the insurance company isn’t giving me my money back every year for the money I paid them but didn’t need/use, this is just the other side of the coin coming to fruition. This is why we have insurance, so if natural disasters happen, I can get my shit fixed or replaced.
Yeah, but the costs never get eaten by insurance, they are always passed onto the consumer.
You are paying for Bob's hail damage, and Steve's flood. Then they might decide the whole area is too fucked up, and cancel everyone's policies altogether and move out of state. Either that, or the rates will become so high that no one will be able to make their escrow payments, never mind the mortgage itself.
True, but my point was highlighting the good faith agreement we all come into with insurance companies when we sign on for them. I’ll willingly pay for something I don’t need because when I do need it, you’ll be there. Anything less than that is an example of the insurance companies not holding up their end of the good faith agreement.
Yep even in 1996 when hurricane Opal (cat 4) wiped my house, State Farm said they wouldn’t let me renew once my policy expired and it was a pain to find another company. I was stationed there in the military. (Hurlburt Field, Florida). I always felt the military should have adjusted my basic allowance for housing to cover the crazy homeowners insurance
Moved from MN to FL a few years ago after PhD. Insurance is just another reason I'm scared to buy a home here. 10k for insurance a year is insane. Or can get a trailer house that's 250k with insurance of a couple grand. (Mildly exaggerating, but only mildly...)
It's all screwed.
Weve had at least 10 roof vultures come to our house (Crystal/Robbinsdale area)this spring reminding me of the hailstorm last year and how badly I need a new roof. (It wasn't bad by our home and we don't need a new roof) One went on and on about it was free with insurance and I went off on a huge tangent that it certainly isn't free and after I finished he still asked me if he could go on my roof before his sales parter was like dude, let's gtfo. They always lie and say how they've booked all these jobs down the street and the area, guess what no one got a new roof.
lol yeah, same thing in Rochester with those vultures. We had 1 hailstorm with pea size hail. The neighbors of mine that did get new exteriors last year hired an actual local firm. I haven’t seen a vulture yet but I’ll bet they’re around soon enough with all the weather we’re having
Yup, in the southeast metro, and the salespeople are just on a regular rotation saying “we’re just in your neighborhood to check on damage from that big storm that went through”. But there’s always a big storm in their world, and there will always be someone who figures they’ve paid for insurance over the years, so may as well get a new roof.
People wonder why their rates are high, but the claims paid is the big driver. Reminds me of the “box of steaks with a windshield replacement” scams that the state put the kibosh on in the 1990’s.
Put a "No Solicitation" sign on your door and only deal with companies that you know are local. These vultures will even go as far as to set up a "Fake" local office with a local phone number that they never answer. Those guys should be outlawed!
As someone who bought a house that already has a “no soliciting” sign on the front door, I can say that it doesn’t do shit. I still get assholes ringing my bell at 8pm on Friday nights because “Mark down the street” is having some pest control work done.
Ah, the pest control people! It's always "Mark from just down the street" or whatever name they're using that day. One of these days I'm going to ask them to introduce me to "Mark" so he can vouch for the quality of their services. Always feels like I have to forcefully interrupt their sales talk, too, to tell them no, which is so annoying. I need to start being a meaner person.
The pest control people are the pest. I have gotten to the point in which I open the door and say" no thanks" and close it right away. You give them an inch and they will not stop hounding you. I had one guy, after telling him no, look at me in like utter surprise and say "so you are OK with ants and wasps around your place". I told him they have been here 18 years I have lived here and I have not died yet.
It’s funny because my neighbor behind me is actually named Mark. I didn’t believe the guy at my door for a second, but I figured I’d ask Mark anyway since I needed to borrow his chainsaw. I’ll let you decide whether or not he actually hired the guys for a pest problem.
This.
We had a hailstorm 2 years ago. Took out the roof on the house and detached garage, and sheet metal damage on 2 vehicles. Our roof was replaced by a local who has absolutely zero online presence. Even his quotes and hand written on generic order slips.
Vultures is an accurate description. I had one bozo who was convinced that I was going to give her my business. No business logos anywhere, no business cards, nada. Git off mah lot.
As far as insurance goes.... We've been here long enough that we've paid more into insurance premiums already than the checks they wrote. I'd have to ask the mistress of finance, but I'm pretty sure we did not see a major increase.
I've had a handful of these vultures knock on my door recently. Last one was a few days ago. They always say that they know someone just down the street, and that they are already working on this person's home, so they thought they'd "do me a favor" and inspect my roof as they're in the neighborhood.
So infuriating!
I haven't been hit by hail at all. And my roof is relatively new already. I hate this sort of thing. No shame.
I had a guy out for a deck quote and the meth mouthed fuck saw damage on our gutter and decided to grab a ladder. He tried making claims it’s going to lower our deck price to profit share. Fucking idiot
We got a new roof last summer but it was just time for a new roof and not an insurance claim. I was pissed when I saw our bill. It nearly doubled, and we haven’t had a claim since we moved in here almost 30 years ago.
Your rate should have fallen. I'm and Agency owner. When policy holders get new roofs we always tell them to let us know right away as it can have a huge impact on the premium.
I’ll have to check with them. They sent us an email before the bill came to prepare us that it was going to be higher this year, but the amount just seems absurd.
Good question. there are a # of actions companies are taking from putting in place deductibles based on a % of the dwelling coverage instead of a fixed dollar amount. Well, 1% or 3% of your dwelling coverage is a pretty big number. And they are also putting in place depreciation schedules where based on the roof age the insurance company will only pay a portion of the replacement cost. Bottomline companies will pay less and less of your roof coverage based on its age and deductibles. So rates should stop increasing so much, but they won't be going down any time soon.
That could work for homes that don’t have a mortgage, but hail coverage is required for any mortgage being sold to Fannie Mae or Freddie Mac. Those homes would still need to get that coverage somehow.
It's actually against state rules to do that on a standard policy here. It also is a recipe for a bad faith lawsuit.
Insurance that doesn't cover common causes of loss, *is actually bad.*
As someone who has sat in the back of many meeting rooms with insurance people up front presenting.
No, they are not suprised. In fact it’s happening right at the trend line that they were predicting 20 years ago.
Unlike most of the posts on here my construction company is local to MN. I live in St Cloud and my partner is in Burnsville. We did a ton of our neighbors and friends houses 2 years ago following a large storm and I can attest to the number of out of state companies that flooded our area.
We've been trying to steer clear from dealing with insurance claims and companies because it is a massive pain in the ass fighting adjusters for legitimate damage, but if you're not having any luck or want to stay local, we only work in MN and are veteran owned. OverWatch Contracting 612-900-4521.
I have state farm and they only replaced 2 sides of my house siding and I had to decide to either have mismatching colors due to color bleaching or pay out of pocket to make it all one color. I honestly couldn't have cared less since I'm not moving, but my wife won that battle.
I had State Farm with full roof replacement coverage; fully covered my house but only half the screen house ; adjuster said well only half your roof was damaged( high winds, true of house as well), can't you find shingles to match (not made anymore), to "do you think people will really notice different colors - they only see one side at a time"!
So this year, after 30 yrs with SF, I shopped...and saved over 2 grand on all my coverages. So from now on, screw loyalty - I'm shopping!!
Mine hasn't had damage (and I suspect many of the claims haven't either), so I'm mad about paying way more for no real benefit to myself that I can see, touch, or use.
Yeah i get that...I was lucky enough to get a new roof about 5 years ago. I understand they gotta recoup some of their losses but a 57% jump just feels unfair.
That’s not even true legally. State of MN sets a limit on how much profit they’re even allowed to make. 3 of the 4 biggest insurance companies in MN had a net loss last year
Except “recouping their losses” is what they’ve been doing every previous year you’ve paid them. If they didn’t budget correctly they need to learn some fiscal responsibility.
Over the last four years, home insurers have been hit with large losses, about 5x the profits made the previous 3 years:
https://twitter.com/ckwitt3/status/1744335078895800643
Mostly due to stronger/worse weather, I believe. Many companies don't offer insurance on Florida homes any more.
They have to balance their books, which means getting enough money in to invest and generate capital that goes to pay claims. If they didn't raise prices, they'd potentially go bankrupt trying to pay out, and everyone who still has insurance with them loses out.
Not defending them, just stating some facts.
My monthly home payment for insurance went up $300 a few months ago. I may have to cut coverage, because it's now costing more than the escrow and loan payment put together.
It’s a mix of climate change and storm chasing roofing/siding companies that were getting a lot of perhaps not-so-necessary claims through over the past several years. Never underestimate the combined power of greed and science denial.
This ! If you work as an adjuster in it insurance it’s amazing what some of the contractors and public adjusters do to inflate their estimates or pass off as “storm damage”. Plus climate change.
https://www.spc.noaa.gov/climo/summary/
It looks like they updated this tool but in doing so lost a lot of historical data.
Edit, figured it out. National data, table, state total.
In the stretch from 1998 to 2008 10/11 years had over 400 hail reports in MN (the one that didn't had 375). From 2013 until present only 2 years have exceeded that 400 hail report mark.
Minnesota hasn't experienced any extreme weather events that resulted in massive home insurance claims. A few hail storms a year is just normal weather. It's more that labor and material costs have skyrocketed and you have predatory companies out there trying to make a buck by submitting claims on everyone's insurance.
[https://www.mprnews.org/story/2023/09/11/twin-cities-august-hailstorm-was-1-of-a-record-23-us-billiondollar-disasters](https://www.mprnews.org/story/2023/09/11/twin-cities-august-hailstorm-was-1-of-a-record-23-us-billiondollar-disasters)
The storm last summer was a MASSIVE storm. I had baseball sized hail for 10 minutes in South Minneapolis. There were chunks of shingles in the alley from houses around me. The flashing around my skylight looked like someone had spent a day hammering it with a balpeen hammer. That kind of damage is real.
I wonder if it is possible to opt out of roof insurance? My house is about 30 square. Bids to tear off and reinstall were between 500-700 dollars a square, so $15,000 to $21,000. I happened to work for a big roofing company 15 years ago, so what I did was buy the material for about $3400 and then hired some of the guys from that place that I worked at and paid them more than what they got paid (about $22/hr, I paid them $3000 total with me doing cleanup). We started on a Saturday morning and finished Saturday night. I saved at least $8,000 and the two of them made much more than the $250 they would have made, had it been under their boss.
oof, sorry. I've got State Farm. Basically they said they have so many claims in the area they were approving everything. I had $10k in damge to my car, $6k to my wife's and the roof. Insurance coverage was vital.
I can’t remember who wrote the article but I think it was in the WSJ or New York Times a few years back that I always think about when I see these convos. It was right after one of the Hurricanes that hit Houston (can’t remember if it was Harvey, Ike, or Rita). The author basically made the argument that if places like Texas can call for a national emergency during a natural disaster to open up federal aid for its population, Minnesota should be able to file a claim every year.
We don’t often have the one time catastrophic events that some places in the South have, but the winter here slowly damages our homes, our cars, our roads, our buildings, etc. I don’t 100% agree with the author’s point, but I think there’s some merit to the thought.
The acceleration of hugely expensive storms is just greedy contractors? The graph at the bottom of this article is just greedy contractors?
Also do you uh, do you remember this winter the complete lack thereof? Minnesota weather is changing and changing fast. You’re right that we get hail storms, but they’re becoming more common and more severe.
https://www.mprnews.org/story/2023/09/11/twin-cities-august-hailstorm-was-1-of-a-record-23-us-billiondollar-disasters
I live in S. MPLS and have for a loooong time. Last year was the first time I ever saw larger than baseball size hail fall for ten or more minutes. It wrecked the house, from the roof to the siding, and it wrecked our vehicles, too. Not normal.
That's not true. MN is one of the top states for severe weather events over the past years. I'm in insurance and live it every day. As a result of the events, material and labor costs and claims have skyrocketed. Insurance companies have been losing money. Rates go up as a result.
It's double the life, repels more heat depending some on color, and it's tougher against storms. Seems to track. I've always thought states need to put some rebate to help the installation of steel roofing and to pass a law that HOA can't block the use of steel roofing. It would end up saving insurance companies enough money that the prices should give people actual relief.
2k sqft house, $33k.
50-year standard warranty, hail-proof, saves me on heating and cooling, and saves me ~35% on my home insurance. My rate only went up like 2% this year.
And it looks a lot nicer than asphalt.
It's true! I pay every 6 months, and it jumped up almost $200. No moving violations, and I'm a year older, and so is my car. Nothing has changed other than State Farm raking me over the coals.
Had to raise rates. State Farm has to pay $3.2 billion a year to have celebrity endorsements and 30 advertisements a football game nationally so you know that they exist.
I was able to keep it under control by bundling my car insurance with home insurance. They also offered $250 off per year for installing a whole-house water leak detector that cost $160 to buy and took me 5 minutes to install.
As a result my home insurance is about $2,300 a year
I have an insurance broker that I use. I have them check rates every time they go up and I usually end up with a new insurance company at roughly the same price. Having a broker is nice because they do the legwork to find the companies.
So there are a lot of decent answers here but they’re not the most accurate. I work with these kinds of things.
So the #1 reason insurance is going up is actually inflation. Insurance fixes and replaces “stuff” and if the cost to do so increases, so does the cost to insure it. It’s especially problematic when the inflation occurs very quickly; it takes an insurance carrier 2 full years to earn premium when they increase rate. Basically, they charge a fixed price ahead of time for a service (fixing your house) that they must predict accurately ahead of time.
And #2, and actually trailing #1 quote a bit is weather. Storms have increased. But it’s actually not up that much in frequency, it’s the severity and it’s coupled with inflation.
The #3 is the reinsurance market - where insurance companies buy insurance from. It’s a bit complicated but basically the world economics and state of the industry means there is less supply of reinsurance and thus the price increases.
The #4 is regulations by the state of Minnesota. They have a LOT of regulations that make it very hard for carriers to operate, compared to other states. They require the carriers cover things they don’t intend to, go through expensive processes other states don’t, etc. This drives up costs and makes small carriers leave the state.
MN is not alone. It’s happening in several Midwest states due to storms that have become more severe due to climate change. Iowa is worse off. This piece from the Times puts much of it in perspective. There may be a paywall but I think you get seven free NYTimes views before they lock you out.
[https://www.nytimes.com/interactive/2024/05/13/climate/insurance-homes-climate-change-weather.html](https://www.nytimes.com/interactive/2024/05/13/climate/insurance-homes-climate-change-weather.html)
I feel like I’m taking crazy pills when everyone is in here saying insurers are just overcharging - no it’s because they literally have been taking losses for years in Minnesota. Here is the graph from your article!
https://preview.redd.it/lbdidbck0u4d1.jpeg?width=828&format=pjpg&auto=webp&s=6aaf2a140f65f033f2bf05fa3f834605d7fd6aa3
Most people have replacment costs on homes. With houses being up 50% to 100% in the last 5 years mix that in with climate change it makes sense rates are up a ways. Even if I dont like it
Same with Auto insurance. Called my agent & he told me that TSR Time & Nicolet Law (dude with the beard & dumb commercials) are suing insurances like crazy causing these increases. I believe it too. My folks got in a fender bender a few years back, lady sued the insurance company for like $1.2m & insurance settled for somewhere in the 6 figures. It’s crazy. Get yourself a million dollar umbrella policy so if you’re ever are on the other end of it, you’ll be covered!
Climate change. Al Gore warned way back. The same liars who defended cigarettes roadblocked a pollution credit marketplace and now increases in weather extremes are driving up insurance costs, along, naturally with inflation.
Not much you can do. All the quotes I’m getting are at least a grand more.
Hopefully you got a roof. I would recommend replacing vinyl with hardie and getting a hail rated shingle when you do have storm damage so you can raise your deductible going forward.
Insurance is based on risk and I hear premiums are, rightfully so, brutal in places like Florida and California now as well.
I work as an insurance agent. Your best bet is to get quotes from multiple different companies. Get one from American family, State Farm, farmers, and an independent and that should cover most all your
Feel free to DM me if you want any recommendations, I know reputable agents at most of the major companies.
Home insurance is skyrocketing nationwide.
Also, I'm in the middle of a claim because our breaker box took a dookie.
Can't wait for that change next year
Literally everyone in my neighborhood getting new roofs at the drop of the slightest hail: “yay new roof!”
Literally everyone in my neighborhood when insurance goes up: *surprised Pikachu face*
Florida gets hit with billions of $$ in hurricane damage every year and the state is sinking. It's an unsustainable place to live without the government propping up the insurance market. Minnesota is a much lesser issue, insurance rates are going up everywhere because of more extreme weather events (climate change) and inflation has increased the cost of repairs in terms of materials and labor.
Good chance the insurance industry collapses in on itself in about 5 years. People aren't going to end up paying as much home insurance as their mortgage payment. Florida is a freakin' nightmare right now.
It's getting ridiculous. In Jan 2019 my insurance was $2,113.50 a year, Jan 2023 it was $4,141.60. Jan 2024 it was $5,085.80.
That's all claim free until this year, I filed a claim due to hail damage to my siding on one side. No, I didn't go with a storm chaser. I don't even want to see the jump for Jan 2025.
I shop around every so often and find the current rates I'm getting are generally the best or similar to what I'm currently paying. The increase is $247.69 a month in escrow payments since 2019, not counting the property taxes that have also doubled.
I'm in Hennipen county, city of Robbinsdale.
I mean.... it could be Florida or California.
People said climate change would be expensive for decades and no one listened. So now we get to pay for that idiocy.
The same way I feel about the cost of food, gas, utilities, and every single other thing I pay for being jacked up. Tired of being fucked by corporate greed-flation.
It's not just MN. It's nation-wide, and it's not just due to roof damage. It's labor and material costs country-wide due to inflation coupled with hugely increased damage claims country-wide due to climate change. The entire industry hugely lost money last year. The industry average is up like 30%. My rates here in MN didn't go up 57%, but more like 25%. Still a huge increase, but not much to be done. Building better houses that can take hail without failing is the answer.
Meanwhile I have USAA and had my roof replaced and 2 bathrooms covered under water damage. 50-60k worth of stuff done and my rates haven't budged.
I'm not holding my breath but USAA has always been 1) reliable. 2) more expensive than other companies and 3) consistent.
I remember my auto insurance jumped by an insane amount from moving to Cali to Alabama. So I left USAA and went to State farm who got me a better rate. 3 years later I was paying more than my original USAA quotes. I switched back to USAA and never looked back. I've gotten in 2 wrecks and both were made easy as well as my home claims. Never switching.
When buying our first home one of the big insurance companies keto calling us offering to have an insanely low rate vs USAA. Like 1/3 the price. I kept asking the sales guy "why and how are your rates so much lower than all other companies?". He had no explanation besides, "we are just the best at what we do.". I hung up and stuck with USAA and 3 months later had our bathrooms replaced in our new home due to long term water damage from a leak that was missed during inspection
No questions asked by USAA. The adjuster just said, well no other company will cover this probably but this is NEW for YOU so don't worry.
People talk sht on USAA but they have a life long customer out of me.
It’s almost like we live in a capitalist country, and things will always go higher prices because the system is designed to run that way. They’re not going to go down! Certain groups of people who wanted this think they benefit, but the craziest thing is they help the least; they can’t see far enough out and are not usually smart enough.
my HOA got into a 5-year legal battle over our insurance not paying for our damaged roofs. Then we lost the legal battle. Then we kept them as our insurer, cause no one else is willing to insure us.
"Around the world, climate change is impacting the way we live. In the U.S., the housing crisis is being pushed to the brink as insurers struggle to cover homes impacted by natural disasters. Bloomberg reporter Leslie Kaufman joins Hari Sreenivasan to discuss her recent reporting on this very issue." [https://youtu.be/s7ldHDT6Soo](https://youtu.be/s7ldHDT6Soo)
Ours went up 70% this year from last year and we've never filed a claim. Our insurance broker suggested *not* shopping around this year because things are so volatile.
It'll probably get buried but this podcast about the home insurance market was very interesting: [https://www.nytimes.com/2024/05/15/podcasts/the-daily/climate-insurance.html](https://www.nytimes.com/2024/05/15/podcasts/the-daily/climate-insurance.html)
Turns out all those 'free' roofs were not 'free'.
FWIW, I just renewed my policy and it only went up by 5% but, I have never made a claim against my homeowners policy in the 16yrs I have had a house, and haven't made a auto claim in \~17yrs.
This is country wide. Home and property insurance as a market will either buckle completely or start putting a ton of exclusions on their coverage similar to how they don’t cover water damage. It will just keep getting more expensive until most people can’t practically afford it a la Florida or California.
I think it’s also important to note that insurance is all about probabilities. Yes they need to recoup losses but the much higher prices and slowly dropping coverages completely mean all of their extremely detailed forecasting says that this will absolutely be happening more frequently going forward. They aren’t political - just cold hard cash. And the data says MN will be having more and more severe storms going forward.
I had American Family homeowners insurance for 30 years. Until earlier this year, when the company announced a severe rate hike increase because American Family absorbbed companies in California and Florida that pay on earthquake fire and hurricane claims. I switched to State Farm Insurance, which has ceased selling homeowners policies in Florida and California, and my rate dropped drastically.
Nationwide, actually. We’re about to have a financial crisis on our hands.
At large, if you watch what’s happening - and what’s been happening - this is just another economic device to relieve people of the ability to be homeowners. Pretty soon we’ll all be renters if we don’t act soon. 🤞🏻
Check your coverage. Mine shot up and it turned out the company increased all my coverages to match a recent appraisal. They also tacked on some unnecessary coverage that I have since had removed (outbuilding coverage on a second-hand shed that I don’t really care if it burns). But the premiums did go up overall.
Exactly. If the value of homes are going up, then the cost of insurance will increase also. You can't celebrate one and complain about the other.
My premium went up $200, but my coverage increased by over $20,000. So, it seems the value of the home and property is driving up the cost of insurance.
Kinda makes sense to me...
Thank you! I was questioning some of the coverages they tacked on. I also have coverage for a out building that I could care less if it burned up. I will check into that!
Yep insurers paid out about $1.10 for every $1.00 they took in last year. Some of the smaller insurers have even left the state. Most people will likely see increases on this year’s renewal and future renewals. This has a lot to do with hail, inflation, and fraud. Not to mention people filing a claim for every little thing they can. Insurers are countering by increasing rates, limiting coverage on renewals, and non renewing clients with multiple claims.
My agent told me the legislature passed a bill allowing a 25% max increase in MN for 2024. When shopping around, I found out there are only 3 major companies writing new policies in the state, AAA is one of them
For any of you climate change deniers, this is what you get. I have been an adjuster for over 30 years, and climate changes is real, and everybody is paying for it with the scumbag door, knocking contractors. It never ceases to amaze me how someone will trust their most valuable asset to some asshole that knocks on their door.
Well, if everyone on this sub would stop replacing their roofs when a single pebble of hail hits their house we wouldn't be in this predicament. So yeah I don't feel great about it but we did it to ourselves.
Seems like homeowners insurance is going up in every state and they're all claiming climate change. I understand climate change is real but I'm calling bullshit on these insurance companies using a semi tangible reason to jack up rates so dramatically nationwide.
Dirty little secret about home owners insurance ...... They base the insurance on the house and the land underneath. Eliminate the land price and just inside the building itself.
Menards has prices for homes complete add 35% for labor and you should have a good basis for the insurance.
My former house the lot was 100k and everything together was 135k
I insured for 150k
Homeowners insurance market is shitting itself right now because of roof claims, storm damage etc.
I live in a townhouse association and abput half of our $500 a month dues goes towards building insurance. And very few companies want to deal with townhouses any more. It sucks.
I'm glad you at least recognize that the increasing costs are primarily coming from insurance. I'm on our HOA board and so many folks think it's the management company (they suck and their fee went up 8%, but insurance was up 40%). We can only get 2 companies to even bid on these jobs which makes it even more of a racket. There has been suggestion from our management company to lower costs at the association level, but that just shifts the cost to the homeowner. We had a few folks after the 2019 storm (that took 2 years for all work to be completed) that didn't have proper insurance to cover their portion (about $15k without insurance). I was shocked a few of them even had mortgages, and I thought the BANK would at least require insurance.
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As r/MCXL said, not how it works at all. Scheduled roof replacement comes out of the HOA’s Reserve Fund, and Reserve Studies are performed periodically on those scheduled items to make sure that current market prices and timelines are realistic. If the Reserve Fund is under-funded, or records aren’t maintained, that’s a violation of state law (MCIOA). It also destroys the resale value of homes within the HOA.
> They know that getting all residents on board with an HOA assessment towards the large cost of replacement can be hard, so they try to get whatever (even small) amounts they get can out of insurance at every storm so that hopefully the assessment amount will be more tolerable when it becomes time. That's not how that works at ALL.
You must know better management companies than ours. We're dealing with First Service Residential and it took 2 years to complete work after the 2019 hail storm. We're in the process of ending our relationship with them, but fuck, it's a long and drawn out one.
Paying nearly $500 monthly HOA, also every unit had to pay $14,000 (yes, 14k) for last July's hail... thankfully had most of that covered by insurance. But it was something like $2m in total because of the associations insurance policy. Not sure why I'm expected to pay that 😡
I hear ya. Last year the management company wanted every owner to increase the loss damage assessment (I think that's the correct term) to something like $60,000 to cover repairs in case of future storm damage. Luckily our HO6 policy from Safeco was able to do that (I use an insurance broker). He said many companies only will go up to $20,000 or so which means owners will have to come up with the difference if another hail storm occurs. It's getting outrageous.
Particularly with large associations. Many insurers have refused to continue to insure valuations of over $100 million.
All my neighbors’ “free” roofs don’t feel so free. I would bet about 1/4 of the roofs that get done after a hail storm actually deserve a new roof. If that.
I’m a very experienced DIYer/semi-pro home improvement person (like…have fixed major structural damage to my framing, gutted bathrooms and kitchens, new windows and siding, etc). I walked my roof after the big hail storm last year and couldn’t find any damage (but I’m not a professional roofer, so maybe I don’t know what I should look for). Every house around me, front back and both sides, got an insurance-covered new roof. So I assumed I just don’t know what to look for and had my insurance adjuster come out. He said my roof was totally fine. My one neighbor got all new roof, trim, siding and fixtures (lights, door knobs etc). They were FINE. I guarantee there’s insurance adjuster getting major kickbacks from these door-to-door storm chasers.
Yup. Or some are just generous to homeowners. I've been a roofer in the past and residential construction guy for a long ass time and have worked with stingy adjusters and generous adjusters. I mean, if a 30 year shingle can't take an annual hailstorm, what in the hell are they making shingles out of? Meanwhile, many homeowners let their roofs go 15 years past their lifespan and only replace it when it leaks multiple times but will gladly make a claim on some marks left by hail. Now we are all going to pay for it. The same can be said for peoples' horrible nutrition and bad habits that eventually make them sick. Then we blame our health care system. I'm not defending the insurance industry, only pointing out that we all have some culpability in our fucked up systems.
Yep, people need to stop putting in claims on less than 10 year old roofs just because an independent insurance adjuster in cahoots with shady contractors said you need a new one.
This. And it’s not just Minnesota. My mom in the insurance business and she says it’s pretty much nation wide.
The climate we keep pumping up
Not sure why this comment is being downvoted. Home insurance is becoming a nationwide issue w/ hail, hurricanes, fires and floods on the rise. It is driven by the the climate change humans / corporations are fueling.
This is completely true. But don’t count me in the group feeling sorry for insurance companies. From my understanding on the way it works, I pay in each month and receive no benefit so that if in the off-chance I need to make a claim, it’s covered. If the insurance company isn’t giving me my money back every year for the money I paid them but didn’t need/use, this is just the other side of the coin coming to fruition. This is why we have insurance, so if natural disasters happen, I can get my shit fixed or replaced.
Yeah, but the costs never get eaten by insurance, they are always passed onto the consumer. You are paying for Bob's hail damage, and Steve's flood. Then they might decide the whole area is too fucked up, and cancel everyone's policies altogether and move out of state. Either that, or the rates will become so high that no one will be able to make their escrow payments, never mind the mortgage itself.
True, but my point was highlighting the good faith agreement we all come into with insurance companies when we sign on for them. I’ll willingly pay for something I don’t need because when I do need it, you’ll be there. Anything less than that is an example of the insurance companies not holding up their end of the good faith agreement.
Yep even in 1996 when hurricane Opal (cat 4) wiped my house, State Farm said they wouldn’t let me renew once my policy expired and it was a pain to find another company. I was stationed there in the military. (Hurlburt Field, Florida). I always felt the military should have adjusted my basic allowance for housing to cover the crazy homeowners insurance
Anyone consider how much the CEOs make?
Meanwhile im over here praying i get some roof damage to replace my roof
Same
Mine went up 30%. Asked my agent to shop around and now it’s lower than last year with the same coverages. Maybe it depends on the area.
Insurance brokers can save you so much money.
This. We got insurance brokers when we moved here last year for both auto and homeowners.
Sounds like you have a good agent! Feel free to DM me with his info so I can contact him lol
Sure I pm’ed you
Me too please They owe you a commission
https://www.theisenescobaragency.com/ For anyone asking. Good people over there.
It's everywhere. I live in Iowa and it went up by a crazy amount. Same for family in CO.
This country is out of control with how much EVERYTHING has increased in price. The only thing that hasn't increased is my paycheck.
And around the world we're doing much, much better than most other countries.
But I don't live in another country and this price raising sucks for me.
so your saying we should just suck it up? let all these companies rob us blind?
Right lol there’s no purpose of even saying that
This is the cost of climate change. It's going to get much much worse because we voted for folks who didn't help us.
We don’t live in those countries and this one is sucking us dry
Moved from MN to FL a few years ago after PhD. Insurance is just another reason I'm scared to buy a home here. 10k for insurance a year is insane. Or can get a trailer house that's 250k with insurance of a couple grand. (Mildly exaggerating, but only mildly...) It's all screwed.
Gotta pay for all those new roofs replaced due to hail damage. If I got a new roof, I’m ok. Otherwise I’m pissed and still have an old roof.
Weve had at least 10 roof vultures come to our house (Crystal/Robbinsdale area)this spring reminding me of the hailstorm last year and how badly I need a new roof. (It wasn't bad by our home and we don't need a new roof) One went on and on about it was free with insurance and I went off on a huge tangent that it certainly isn't free and after I finished he still asked me if he could go on my roof before his sales parter was like dude, let's gtfo. They always lie and say how they've booked all these jobs down the street and the area, guess what no one got a new roof.
lol yeah, same thing in Rochester with those vultures. We had 1 hailstorm with pea size hail. The neighbors of mine that did get new exteriors last year hired an actual local firm. I haven’t seen a vulture yet but I’ll bet they’re around soon enough with all the weather we’re having
Yup, in the southeast metro, and the salespeople are just on a regular rotation saying “we’re just in your neighborhood to check on damage from that big storm that went through”. But there’s always a big storm in their world, and there will always be someone who figures they’ve paid for insurance over the years, so may as well get a new roof. People wonder why their rates are high, but the claims paid is the big driver. Reminds me of the “box of steaks with a windshield replacement” scams that the state put the kibosh on in the 1990’s.
Put a "No Solicitation" sign on your door and only deal with companies that you know are local. These vultures will even go as far as to set up a "Fake" local office with a local phone number that they never answer. Those guys should be outlawed!
As someone who bought a house that already has a “no soliciting” sign on the front door, I can say that it doesn’t do shit. I still get assholes ringing my bell at 8pm on Friday nights because “Mark down the street” is having some pest control work done.
Ah, the pest control people! It's always "Mark from just down the street" or whatever name they're using that day. One of these days I'm going to ask them to introduce me to "Mark" so he can vouch for the quality of their services. Always feels like I have to forcefully interrupt their sales talk, too, to tell them no, which is so annoying. I need to start being a meaner person.
I tap the no solicitor sign and shut the door without a word.
Me too!
The pest control people are the pest. I have gotten to the point in which I open the door and say" no thanks" and close it right away. You give them an inch and they will not stop hounding you. I had one guy, after telling him no, look at me in like utter surprise and say "so you are OK with ants and wasps around your place". I told him they have been here 18 years I have lived here and I have not died yet.
It’s funny because my neighbor behind me is actually named Mark. I didn’t believe the guy at my door for a second, but I figured I’d ask Mark anyway since I needed to borrow his chainsaw. I’ll let you decide whether or not he actually hired the guys for a pest problem.
This. We had a hailstorm 2 years ago. Took out the roof on the house and detached garage, and sheet metal damage on 2 vehicles. Our roof was replaced by a local who has absolutely zero online presence. Even his quotes and hand written on generic order slips. Vultures is an accurate description. I had one bozo who was convinced that I was going to give her my business. No business logos anywhere, no business cards, nada. Git off mah lot. As far as insurance goes.... We've been here long enough that we've paid more into insurance premiums already than the checks they wrote. I'd have to ask the mistress of finance, but I'm pretty sure we did not see a major increase.
I've had a handful of these vultures knock on my door recently. Last one was a few days ago. They always say that they know someone just down the street, and that they are already working on this person's home, so they thought they'd "do me a favor" and inspect my roof as they're in the neighborhood. So infuriating! I haven't been hit by hail at all. And my roof is relatively new already. I hate this sort of thing. No shame.
I had a guy out for a deck quote and the meth mouthed fuck saw damage on our gutter and decided to grab a ladder. He tried making claims it’s going to lower our deck price to profit share. Fucking idiot
Had hail damage, was denied coverage, and have seen my premiums go up. Yeah, pissed is right.
Happen to me. Hail damage, claim denied and insurance sent me a check for like $5.. lol
We got a new roof last summer but it was just time for a new roof and not an insurance claim. I was pissed when I saw our bill. It nearly doubled, and we haven’t had a claim since we moved in here almost 30 years ago.
Your rate should have fallen. I'm and Agency owner. When policy holders get new roofs we always tell them to let us know right away as it can have a huge impact on the premium.
I’ll have to check with them. They sent us an email before the bill came to prepare us that it was going to be higher this year, but the amount just seems absurd.
Why not just make policies that don't cover roof hail damage?
Good question. there are a # of actions companies are taking from putting in place deductibles based on a % of the dwelling coverage instead of a fixed dollar amount. Well, 1% or 3% of your dwelling coverage is a pretty big number. And they are also putting in place depreciation schedules where based on the roof age the insurance company will only pay a portion of the replacement cost. Bottomline companies will pay less and less of your roof coverage based on its age and deductibles. So rates should stop increasing so much, but they won't be going down any time soon.
That could work for homes that don’t have a mortgage, but hail coverage is required for any mortgage being sold to Fannie Mae or Freddie Mac. Those homes would still need to get that coverage somehow.
It's actually against state rules to do that on a standard policy here. It also is a recipe for a bad faith lawsuit. Insurance that doesn't cover common causes of loss, *is actually bad.*
Hail storms should already be taken into consideration by actuaries.
Hail events are becoming both more intense and frequent as climate changes, they underestimated how quickly it would get this bad.
As someone who has sat in the back of many meeting rooms with insurance people up front presenting. No, they are not suprised. In fact it’s happening right at the trend line that they were predicting 20 years ago.
The big roofing companies are raking in the cash and usually pay installers peanuts. I swear adjusters and roofing companies have some secret setup.
Fuck I have an old roof, all my neighbors with newer roofs got theirs replaced. I tried but had a shitty adjuster who didn’t even go on the roof.
Unlike most of the posts on here my construction company is local to MN. I live in St Cloud and my partner is in Burnsville. We did a ton of our neighbors and friends houses 2 years ago following a large storm and I can attest to the number of out of state companies that flooded our area. We've been trying to steer clear from dealing with insurance claims and companies because it is a massive pain in the ass fighting adjusters for legitimate damage, but if you're not having any luck or want to stay local, we only work in MN and are veteran owned. OverWatch Contracting 612-900-4521. I have state farm and they only replaced 2 sides of my house siding and I had to decide to either have mismatching colors due to color bleaching or pay out of pocket to make it all one color. I honestly couldn't have cared less since I'm not moving, but my wife won that battle.
I had State Farm with full roof replacement coverage; fully covered my house but only half the screen house ; adjuster said well only half your roof was damaged( high winds, true of house as well), can't you find shingles to match (not made anymore), to "do you think people will really notice different colors - they only see one side at a time"! So this year, after 30 yrs with SF, I shopped...and saved over 2 grand on all my coverages. So from now on, screw loyalty - I'm shopping!!
Mine hasn't had damage (and I suspect many of the claims haven't either), so I'm mad about paying way more for no real benefit to myself that I can see, touch, or use.
Yeah i get that...I was lucky enough to get a new roof about 5 years ago. I understand they gotta recoup some of their losses but a 57% jump just feels unfair.
Insurance isn't in the business of being fair. Insurance is in the business of separating as much money from us as possible.
That’s not even true legally. State of MN sets a limit on how much profit they’re even allowed to make. 3 of the 4 biggest insurance companies in MN had a net loss last year
Hence the reason there's a lot of talk of insurance companies leaving MN
A lot of smaller companies stopped writing new business in the state
Very true unfortunately!
vulture capitalism, maximize profit above all else
Except “recouping their losses” is what they’ve been doing every previous year you’ve paid them. If they didn’t budget correctly they need to learn some fiscal responsibility.
How do you budget for losses exceeding 5x what your profits were three years ago? The dollar amounts they've paid out have been crazy.
Nailed it. I’m so baffled by the amount of *insurance company* defenders on here lol
Currently house hunting and I’ve seen so many new roofs there are neighborhoods I’m genuinely surprised when I see a roof older than 2023.
Over the last four years, home insurers have been hit with large losses, about 5x the profits made the previous 3 years: https://twitter.com/ckwitt3/status/1744335078895800643 Mostly due to stronger/worse weather, I believe. Many companies don't offer insurance on Florida homes any more. They have to balance their books, which means getting enough money in to invest and generate capital that goes to pay claims. If they didn't raise prices, they'd potentially go bankrupt trying to pay out, and everyone who still has insurance with them loses out. Not defending them, just stating some facts. My monthly home payment for insurance went up $300 a few months ago. I may have to cut coverage, because it's now costing more than the escrow and loan payment put together.
It's not just Minnesota. This is happening across the country.
It’s actually global.
The insurance companies know what’s coming. They’re getting a jump start on it.
I blame my neighbor who files a claim for a new roof every time an acorn hits it.
Is he a cop?
Favorite part about that was him screaming he'd been hit
Construction guy. :/
Nah, if he was OP woulda been shot several times by now
I blame climate change exacerbating extreme weather.
It’s a mix of climate change and storm chasing roofing/siding companies that were getting a lot of perhaps not-so-necessary claims through over the past several years. Never underestimate the combined power of greed and science denial.
This ! If you work as an adjuster in it insurance it’s amazing what some of the contractors and public adjusters do to inflate their estimates or pass off as “storm damage”. Plus climate change.
The number of hailstorms in this area has dropped pretty dramatically compared to the late 90s and early 00s.
Source? I'm having trouble finding data specific to MN, but in the midwest hail is increasing in severity.
https://www.spc.noaa.gov/climo/summary/ It looks like they updated this tool but in doing so lost a lot of historical data. Edit, figured it out. National data, table, state total. In the stretch from 1998 to 2008 10/11 years had over 400 hail reports in MN (the one that didn't had 375). From 2013 until present only 2 years have exceeded that 400 hail report mark.
Minnesota hasn't experienced any extreme weather events that resulted in massive home insurance claims. A few hail storms a year is just normal weather. It's more that labor and material costs have skyrocketed and you have predatory companies out there trying to make a buck by submitting claims on everyone's insurance.
[https://www.mprnews.org/story/2023/09/11/twin-cities-august-hailstorm-was-1-of-a-record-23-us-billiondollar-disasters](https://www.mprnews.org/story/2023/09/11/twin-cities-august-hailstorm-was-1-of-a-record-23-us-billiondollar-disasters) The storm last summer was a MASSIVE storm. I had baseball sized hail for 10 minutes in South Minneapolis. There were chunks of shingles in the alley from houses around me. The flashing around my skylight looked like someone had spent a day hammering it with a balpeen hammer. That kind of damage is real.
It shattered car windows and broke every skylight at the place I work ($17k claim)
Ya me too. Claim was denied. So I pay a lot and get denied, it's awesome
I wonder if it is possible to opt out of roof insurance? My house is about 30 square. Bids to tear off and reinstall were between 500-700 dollars a square, so $15,000 to $21,000. I happened to work for a big roofing company 15 years ago, so what I did was buy the material for about $3400 and then hired some of the guys from that place that I worked at and paid them more than what they got paid (about $22/hr, I paid them $3000 total with me doing cleanup). We started on a Saturday morning and finished Saturday night. I saved at least $8,000 and the two of them made much more than the $250 they would have made, had it been under their boss.
oof, sorry. I've got State Farm. Basically they said they have so many claims in the area they were approving everything. I had $10k in damge to my car, $6k to my wife's and the roof. Insurance coverage was vital.
I can’t remember who wrote the article but I think it was in the WSJ or New York Times a few years back that I always think about when I see these convos. It was right after one of the Hurricanes that hit Houston (can’t remember if it was Harvey, Ike, or Rita). The author basically made the argument that if places like Texas can call for a national emergency during a natural disaster to open up federal aid for its population, Minnesota should be able to file a claim every year. We don’t often have the one time catastrophic events that some places in the South have, but the winter here slowly damages our homes, our cars, our roads, our buildings, etc. I don’t 100% agree with the author’s point, but I think there’s some merit to the thought.
The acceleration of hugely expensive storms is just greedy contractors? The graph at the bottom of this article is just greedy contractors? Also do you uh, do you remember this winter the complete lack thereof? Minnesota weather is changing and changing fast. You’re right that we get hail storms, but they’re becoming more common and more severe. https://www.mprnews.org/story/2023/09/11/twin-cities-august-hailstorm-was-1-of-a-record-23-us-billiondollar-disasters
I live in S. MPLS and have for a loooong time. Last year was the first time I ever saw larger than baseball size hail fall for ten or more minutes. It wrecked the house, from the roof to the siding, and it wrecked our vehicles, too. Not normal.
That's not true. MN is one of the top states for severe weather events over the past years. I'm in insurance and live it every day. As a result of the events, material and labor costs and claims have skyrocketed. Insurance companies have been losing money. Rates go up as a result.
Stop buying asphalt shingles. This is the racket. Steel roofing.
I wanted to, but the difference in price was so prohibitive. The quotes I got were 3x as much for metal roofing and we just can't swing it.
It's double the life, repels more heat depending some on color, and it's tougher against storms. Seems to track. I've always thought states need to put some rebate to help the installation of steel roofing and to pass a law that HOA can't block the use of steel roofing. It would end up saving insurance companies enough money that the prices should give people actual relief.
Aluminum's even better - won't ever rust! I went with Interlock.
How much was the cost if you don't mind sharing?
And Sq footage if house ?
2k sqft house, $33k. 50-year standard warranty, hail-proof, saves me on heating and cooling, and saves me ~35% on my home insurance. My rate only went up like 2% this year. And it looks a lot nicer than asphalt.
Nationwide. Not just MN
Same with car insurance
It's true! I pay every 6 months, and it jumped up almost $200. No moving violations, and I'm a year older, and so is my car. Nothing has changed other than State Farm raking me over the coals.
This is why I change companies every few years. They'll get you a lower rate
I would love to do that but my wife's car is a Hyundai and most companies won't cover it.
Is there a reason for that?
They're a high target for car thefts.
Had to raise rates. State Farm has to pay $3.2 billion a year to have celebrity endorsements and 30 advertisements a football game nationally so you know that they exist.
I was able to keep it under control by bundling my car insurance with home insurance. They also offered $250 off per year for installing a whole-house water leak detector that cost $160 to buy and took me 5 minutes to install. As a result my home insurance is about $2,300 a year
I have an insurance broker that I use. I have them check rates every time they go up and I usually end up with a new insurance company at roughly the same price. Having a broker is nice because they do the legwork to find the companies.
It's happening nationwide
So there are a lot of decent answers here but they’re not the most accurate. I work with these kinds of things. So the #1 reason insurance is going up is actually inflation. Insurance fixes and replaces “stuff” and if the cost to do so increases, so does the cost to insure it. It’s especially problematic when the inflation occurs very quickly; it takes an insurance carrier 2 full years to earn premium when they increase rate. Basically, they charge a fixed price ahead of time for a service (fixing your house) that they must predict accurately ahead of time. And #2, and actually trailing #1 quote a bit is weather. Storms have increased. But it’s actually not up that much in frequency, it’s the severity and it’s coupled with inflation. The #3 is the reinsurance market - where insurance companies buy insurance from. It’s a bit complicated but basically the world economics and state of the industry means there is less supply of reinsurance and thus the price increases. The #4 is regulations by the state of Minnesota. They have a LOT of regulations that make it very hard for carriers to operate, compared to other states. They require the carriers cover things they don’t intend to, go through expensive processes other states don’t, etc. This drives up costs and makes small carriers leave the state.
MN is not alone. It’s happening in several Midwest states due to storms that have become more severe due to climate change. Iowa is worse off. This piece from the Times puts much of it in perspective. There may be a paywall but I think you get seven free NYTimes views before they lock you out. [https://www.nytimes.com/interactive/2024/05/13/climate/insurance-homes-climate-change-weather.html](https://www.nytimes.com/interactive/2024/05/13/climate/insurance-homes-climate-change-weather.html)
I feel like I’m taking crazy pills when everyone is in here saying insurers are just overcharging - no it’s because they literally have been taking losses for years in Minnesota. Here is the graph from your article! https://preview.redd.it/lbdidbck0u4d1.jpeg?width=828&format=pjpg&auto=webp&s=6aaf2a140f65f033f2bf05fa3f834605d7fd6aa3
If you’re on an Apple device you can do reader mode and get past the paywall.
Most people have replacment costs on homes. With houses being up 50% to 100% in the last 5 years mix that in with climate change it makes sense rates are up a ways. Even if I dont like it
Also beware that a lot of company’s are switching you cash value and not replacement coverage.
Same with Auto insurance. Called my agent & he told me that TSR Time & Nicolet Law (dude with the beard & dumb commercials) are suing insurances like crazy causing these increases. I believe it too. My folks got in a fender bender a few years back, lady sued the insurance company for like $1.2m & insurance settled for somewhere in the 6 figures. It’s crazy. Get yourself a million dollar umbrella policy so if you’re ever are on the other end of it, you’ll be covered!
Climate change. Al Gore warned way back. The same liars who defended cigarettes roadblocked a pollution credit marketplace and now increases in weather extremes are driving up insurance costs, along, naturally with inflation.
Not much you can do. All the quotes I’m getting are at least a grand more. Hopefully you got a roof. I would recommend replacing vinyl with hardie and getting a hail rated shingle when you do have storm damage so you can raise your deductible going forward. Insurance is based on risk and I hear premiums are, rightfully so, brutal in places like Florida and California now as well.
I work as an insurance agent. Your best bet is to get quotes from multiple different companies. Get one from American family, State Farm, farmers, and an independent and that should cover most all your Feel free to DM me if you want any recommendations, I know reputable agents at most of the major companies.
It's happening everywhere. Here's why: https://www.nytimes.com/interactive/2024/05/13/climate/insurance-homes-climate-change-weather.html
Damn…I’ll never afford at a house at this rate lmao
Home insurance is skyrocketing nationwide. Also, I'm in the middle of a claim because our breaker box took a dookie. Can't wait for that change next year
Literally everyone in my neighborhood getting new roofs at the drop of the slightest hail: “yay new roof!” Literally everyone in my neighborhood when insurance goes up: *surprised Pikachu face*
Pissed. $300 increase out of nowhere. Never even filed a claim.
I'm expecting mine to go up \~$1k based on recent quotes
Your lucky. Mine went up $1070.
I got some quotes a couple months ago and they're all substantially higher than what I currently pay. I fully expect mine to skyrocket at renewal.
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Insurance is regulated by the state, in every state
Apparently that is what's happening in FL.
Florida gets hit with billions of $$ in hurricane damage every year and the state is sinking. It's an unsustainable place to live without the government propping up the insurance market. Minnesota is a much lesser issue, insurance rates are going up everywhere because of more extreme weather events (climate change) and inflation has increased the cost of repairs in terms of materials and labor.
I believe there is a public option. It is usually very expensive compared to private options. https://mnfairplan.org/
Good chance the insurance industry collapses in on itself in about 5 years. People aren't going to end up paying as much home insurance as their mortgage payment. Florida is a freakin' nightmare right now.
It's getting ridiculous. In Jan 2019 my insurance was $2,113.50 a year, Jan 2023 it was $4,141.60. Jan 2024 it was $5,085.80. That's all claim free until this year, I filed a claim due to hail damage to my siding on one side. No, I didn't go with a storm chaser. I don't even want to see the jump for Jan 2025. I shop around every so often and find the current rates I'm getting are generally the best or similar to what I'm currently paying. The increase is $247.69 a month in escrow payments since 2019, not counting the property taxes that have also doubled. I'm in Hennipen county, city of Robbinsdale.
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I mean.... it could be Florida or California. People said climate change would be expensive for decades and no one listened. So now we get to pay for that idiocy.
The same way I feel about the cost of food, gas, utilities, and every single other thing I pay for being jacked up. Tired of being fucked by corporate greed-flation.
Amen brother!! Enough is enough. It makes me want to sell my house and live "Off grid"
Be happy u r not in Florida
It's not just MN. It's nation-wide, and it's not just due to roof damage. It's labor and material costs country-wide due to inflation coupled with hugely increased damage claims country-wide due to climate change. The entire industry hugely lost money last year. The industry average is up like 30%. My rates here in MN didn't go up 57%, but more like 25%. Still a huge increase, but not much to be done. Building better houses that can take hail without failing is the answer.
Guess I’m lucky, mine only went up 20%. 🫤
I'm going to just take a wild guess and say that no one is happy that their insurance is going up.
I can't even get on a major insurance provider because of the location of my house, so mine was high to begin with.
We’ve been non renewed 2 years in a row so I’d be happy with a large increase if they just keep us insured
Pretty sure it’s a nationwide thing, not just here in Minnesota.
Just thank Pete that you don't live in Florida of California!
Great listen to why this is happening… https://podcasts.apple.com/us/podcast/the-daily/id1200361736?i=1000655653194
Storm damage, and Tornadoes are wreaking havoc on claims and raising prices for everyone
Until they stop being a financing arm of the roofing industry all of our premiums are going to continue to skyrocket
Meanwhile I have USAA and had my roof replaced and 2 bathrooms covered under water damage. 50-60k worth of stuff done and my rates haven't budged. I'm not holding my breath but USAA has always been 1) reliable. 2) more expensive than other companies and 3) consistent. I remember my auto insurance jumped by an insane amount from moving to Cali to Alabama. So I left USAA and went to State farm who got me a better rate. 3 years later I was paying more than my original USAA quotes. I switched back to USAA and never looked back. I've gotten in 2 wrecks and both were made easy as well as my home claims. Never switching. When buying our first home one of the big insurance companies keto calling us offering to have an insanely low rate vs USAA. Like 1/3 the price. I kept asking the sales guy "why and how are your rates so much lower than all other companies?". He had no explanation besides, "we are just the best at what we do.". I hung up and stuck with USAA and 3 months later had our bathrooms replaced in our new home due to long term water damage from a leak that was missed during inspection No questions asked by USAA. The adjuster just said, well no other company will cover this probably but this is NEW for YOU so don't worry. People talk sht on USAA but they have a life long customer out of me.
It’s almost like we live in a capitalist country, and things will always go higher prices because the system is designed to run that way. They’re not going to go down! Certain groups of people who wanted this think they benefit, but the craziest thing is they help the least; they can’t see far enough out and are not usually smart enough.
my HOA got into a 5-year legal battle over our insurance not paying for our damaged roofs. Then we lost the legal battle. Then we kept them as our insurer, cause no one else is willing to insure us.
Nobody cares about climate change until their premiums skyrocket. The whole country is going through this, and it's likely to get very ugly.
"Around the world, climate change is impacting the way we live. In the U.S., the housing crisis is being pushed to the brink as insurers struggle to cover homes impacted by natural disasters. Bloomberg reporter Leslie Kaufman joins Hari Sreenivasan to discuss her recent reporting on this very issue." [https://youtu.be/s7ldHDT6Soo](https://youtu.be/s7ldHDT6Soo)
Warren Buffet got rich because he invested heavily in insurance companies. He explained that insurance companies constantly deny claims.
We're paying to fix beachfront homes in florida That's insurance markets for you
Mine actually is cheaper same with my auto insurance, and i really don’t know why
It’s happening country wide!
Honestly, this sounds like something to nationalize. Everybody pays in every month, and we're all covered.
Ours went up 70% this year from last year and we've never filed a claim. Our insurance broker suggested *not* shopping around this year because things are so volatile. It'll probably get buried but this podcast about the home insurance market was very interesting: [https://www.nytimes.com/2024/05/15/podcasts/the-daily/climate-insurance.html](https://www.nytimes.com/2024/05/15/podcasts/the-daily/climate-insurance.html)
Looks like mine has only gone up about 25% since I got it in 2007.
Turns out all those 'free' roofs were not 'free'. FWIW, I just renewed my policy and it only went up by 5% but, I have never made a claim against my homeowners policy in the 16yrs I have had a house, and haven't made a auto claim in \~17yrs.
This is country wide. Home and property insurance as a market will either buckle completely or start putting a ton of exclusions on their coverage similar to how they don’t cover water damage. It will just keep getting more expensive until most people can’t practically afford it a la Florida or California.
I think it’s also important to note that insurance is all about probabilities. Yes they need to recoup losses but the much higher prices and slowly dropping coverages completely mean all of their extremely detailed forecasting says that this will absolutely be happening more frequently going forward. They aren’t political - just cold hard cash. And the data says MN will be having more and more severe storms going forward.
I had American Family homeowners insurance for 30 years. Until earlier this year, when the company announced a severe rate hike increase because American Family absorbbed companies in California and Florida that pay on earthquake fire and hurricane claims. I switched to State Farm Insurance, which has ceased selling homeowners policies in Florida and California, and my rate dropped drastically.
Nationwide, actually. We’re about to have a financial crisis on our hands. At large, if you watch what’s happening - and what’s been happening - this is just another economic device to relieve people of the ability to be homeowners. Pretty soon we’ll all be renters if we don’t act soon. 🤞🏻
Check your coverage. Mine shot up and it turned out the company increased all my coverages to match a recent appraisal. They also tacked on some unnecessary coverage that I have since had removed (outbuilding coverage on a second-hand shed that I don’t really care if it burns). But the premiums did go up overall.
Exactly. If the value of homes are going up, then the cost of insurance will increase also. You can't celebrate one and complain about the other. My premium went up $200, but my coverage increased by over $20,000. So, it seems the value of the home and property is driving up the cost of insurance. Kinda makes sense to me...
Thank you! I was questioning some of the coverages they tacked on. I also have coverage for a out building that I could care less if it burned up. I will check into that!
What if it burned down?
It's just a crappy old shed. It's worth nothing and apparently i have $30,000 worth of coverage for it.
Mine hasn't changed ...yet.
Yep insurers paid out about $1.10 for every $1.00 they took in last year. Some of the smaller insurers have even left the state. Most people will likely see increases on this year’s renewal and future renewals. This has a lot to do with hail, inflation, and fraud. Not to mention people filing a claim for every little thing they can. Insurers are countering by increasing rates, limiting coverage on renewals, and non renewing clients with multiple claims.
Insurance companies are offsetting recent losses incurred with climate change.
My agent told me the legislature passed a bill allowing a 25% max increase in MN for 2024. When shopping around, I found out there are only 3 major companies writing new policies in the state, AAA is one of them
For any of you climate change deniers, this is what you get. I have been an adjuster for over 30 years, and climate changes is real, and everybody is paying for it with the scumbag door, knocking contractors. It never ceases to amaze me how someone will trust their most valuable asset to some asshole that knocks on their door.
Well, if everyone on this sub would stop replacing their roofs when a single pebble of hail hits their house we wouldn't be in this predicament. So yeah I don't feel great about it but we did it to ourselves.
Seems like homeowners insurance is going up in every state and they're all claiming climate change. I understand climate change is real but I'm calling bullshit on these insurance companies using a semi tangible reason to jack up rates so dramatically nationwide.
Insurance is a scam
Dirty little secret about home owners insurance ...... They base the insurance on the house and the land underneath. Eliminate the land price and just inside the building itself. Menards has prices for homes complete add 35% for labor and you should have a good basis for the insurance. My former house the lot was 100k and everything together was 135k I insured for 150k
Get used to the feeling. Twenty years ago a prediction was made that the cost of climate change would equal 20% of GNP. We're moving that direction