We received our insurance policy renewal in the mail this week. First, let me make this clear - I am always very relieved that there has been a renewal in the mail each year.
However, we are now facing an annual premium of around $4200. This does not include the flood insurance premium through NFIP. But it does include a separate 'hurricane windstorm' deductible of approximately $16,000. Yeah - that's useful.
According to the declarations page - our premium was increased once again (this same statement has been on our annual renewal since Hurricane Ivan in 2004 when they sent us a check for $400 to replace some siding) by 15% due to our 'loss experience'. It's probably a safe bet that that 15% increase will go on annually for quite some time.
In addition to the premium increase - our required coverages were also increased due to inflation at a rate of 4.6%.
The thing that I can't get out of my head is that after paying this premium for almost half a million dollars in coverage for the house and contents with a basic homeowner's policy in addition to hurricane windstorm coverage, sewer backup coverage, and earthquake insurance. If Hurricane Katrina hit tomorrow... We would be lucky to get the $26,000 we got in 2005. Ah - but we're required to carry this insurance as long as we have a mortgage. Why - I'm not sure. The $26,000 certainly wouldn't have done the bank any more good than it did us.
For the curious - sewer backup and earthquake insurance now costs us approximately $80 per year total. The flood insurance premium costs somewhere around $300.
Prior to Katrina our regular insurance premium (including hurricane coverage) was approximately $2500 annually.
3 comments:
I will never complain about my insurance premium again. Ever!
Thanks for the link to that article on windows. I don't think he sees his reflection because the window is fogged up from the gas being gone in between the panes (I have to have it replaced). I could understand it when he could see himself, but not this time. Sigh.
Windows article? Reflection in window?
Just a note in case anyone gets here looking for info about flood insurance. I've been paying over $1000 a year for mine, and stumbled across the fact that my next door neighbor pays about $300.
he difference is due to his having an Elevation Certificate from a surveyor. Since our houses are at about the same level, I'm going to get one and see if that helps.
My insurance agent never mentioned this to me over the six? years I've owned the house, and looking back in the old bills from when my late Mom owned the house, I can see Mom was paying the higher rate also.
Egad karen anne - that's some important info. I had no idea. Here of late we've been told that the agents won't even sell you a flood insurance policy without the elevation certificate if one is needed for your zone.
It's outrageous that the agent didn't mention it to you (or your mom) either. Blah... think of all that money down the tube.
Sure hope the certification lowers that premium for you.
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