Home Owner Insurance Rates Increase in TN?

#1
VolStrom

VolStrom

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#1
I'm not really sure what's going on, but I got my home owners insurance bill from the TN Farm Bureau today and it went up 25%. I have never had a claim with them in the last 25 years of having insurance with them and when I called to speak to my agent (who was out) the woman that answered the phone told me that they had a large across the board increase.

I'm just curious if anyone else that has homeowners insurance with them has seen an increase like this? last year it went up about 7% which I thought was high.

I'd also be curious to know if anyone else that has homeowners through anyone else in TN saw a 25% increase?
 
#7
#7
If mine went up it wasn’t much. Do you know if any local ordinances changed? Here they were proposing minimum sqft requirements for new builds, so in the event your house was lost you’d have to comply with the new rules. So if you had a 1200sqft house and they change it to 1600 minimum, your replacement cost would go up 33%.

A few years back my boss’s went up 25% in GA just across the TN border. When he asked why they said hurricanes.
 
#8
#8
DancingOutlaw said:
If mine went up it wasn’t much. Do you know if any local ordinances changed? Here they were proposing minimum sqft requirements for new builds, so in the event your house was lost you’d have to comply with the new rules. So if you had a 1200sqft house and they change it to 1600 minimum, your replacement cost would go up 33%.
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That's fall under Ordinance and Law coverage. Shouldn't affect the replacement cost of the home.
 
#9
#9
VolStrom said:
Oh I plan on rate shopping. I'm just curious if anyone else is seeing these massive rate increases.
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Is it truly a rate increase or did your Coverage A amount just increase significantly?
 
#10
#10
Mine went up $200. Have farm bureau as well. They tried to play it off as my home value increased this year. It's went up nearly $300 the last 18 months.
 
#11
#11
I've yet to attend an insurance company meeting in which the insurer holding the meeting didn't show homeowners insurance losing money.
 
#14
#14
A lot depends on where you live as well. Erie's rates differ all the way down to the zip +4, while most companies go by county
 
#15
#15
GAVol said:
Is it truly a rate increase or did your Coverage A amount just increase significantly?
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My coverage amount increased something like $6k from the previous year, which is like 2% of the value of the house, not quite enough to justify a 25% increase in premiums. Like I said, I haven't ever filed a claim, my credit is excellent, I live less than 200 feet from a hydrant in a city with a very good fire department rating.

I'll see what the agent says when he (if) calls me back next week. I'm a USAA member so I think I'll call them and get a quote and check out out a local insurance broker.
 
#16
#16
I would be curious as to what county you live in? Farm Bureau typically has rate increases based on the county loss ratio (IE, hit with several hail storms recently, tornado, etc). Farm Bureau is a unique company in that all of their risks are in one state versus, say, State Farm where their risks are spread out nationwide. If three hail storms come barreling across the plateau in a month, Farm Bureau gets hammered because they don’t have houses in another state to compensate for the losses. Likewise, if Tn has several good years without severe storms, etc, Farm Bureau will typically be as competitive as they come.

But to answer your question, I was insured with Liberty Mutual for the past 4-5 years with no losses and my rate increased apx 20 percent at renewal so I shopped it with a local independent and ended up saving about 25%. (And apx 10% on my auto policy as well).

Edit: Also, just a suggestion: If you haven’t got a call from your FB agent by noon on Tuesday, call that lady back and tell her you need a quote on a 500,000 Universal Life policy. Guarantee you that an agent calls you back by the end of the business day. They push their overpriced life insurance like no tomorrow.
 
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#17
#17
I just got my letter from Farm Bureau.....my insurance took a 14% increase. I have been with Farm Bureau for over 20 years and never had a claim. I am going to start shopping this coming week.
 
#19
#19
MadisonvilleVol said:
Edit: Also, just a suggestion: If you haven’t got a call from your FB agent by noon on Tuesday, call that lady back and tell her you need a quote on a 500,000 Universal Life policy. Guarantee you that an agent calls you back by the end of the business day. They push their overpriced life insurance like no tomorrow.
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Lol... That's definitely the way to motivate a call back.
 
#20
#20
What was mentioned on the news was a tax increase on housing not insurance.

25% is a ridiculous number though.
 
#21
#21
I just left ky farm bureau and went to State Farm. My car insurance has gone up about $8/month. SF was about $30 less than that.
 
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#23
#23
Coug said:
What was mentioned on the news was a tax increase on housing not insurance.

25% is a ridiculous number though.
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It would seem so, but it also depends on how long it's been since the last rate change. They can't change rates just because.
 
#24
#24
MadisonvilleVol said:
I would be curious as to what county you live in? Farm Bureau typically has rate increases based on the county loss ratio (IE, hit with several hail storms recently, tornado, etc). Farm Bureau is a unique company in that all of their risks are in one state versus, say, State Farm where their risks are spread out nationwide. If three hail storms come barreling across the plateau in a month, Farm Bureau gets hammered because they don’t have houses in another state to compensate for the losses. Likewise, if Tn has several good years without severe storms, etc, Farm Bureau will typically be as competitive as they come.

But to answer your question, I was insured with Liberty Mutual for the past 4-5 years with no losses and my rate increased apx 20 percent at renewal so I shopped it with a local independent and ended up saving about 25%. (And apx 10% on my auto policy as well).

Edit: Also, just a suggestion: If you haven’t got a call from your FB agent by noon on Tuesday, call that lady back and tell her you need a quote on a 500,000 Universal Life policy. Guarantee you that an agent calls you back by the end of the business day. They push their overpriced life insurance like no tomorrow.
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I live in Blount County and as far as I remember we haven't had any serious storms in 4 or 5 years.

I really have liked being with Farm Bureau because of the few times I have filed a claim on my auto insurance because of teen aged drivers they never increased my rates. I recently bought a new truck and even though the value was $40k more than my previous vehicle they only went up a about a hundred a year.

My rates on homeowners insurance are another story. They have essentially doubled my rates in the last 5 years. So I have no teenagers anymore, a good driving record and no claims in about 15 years. I'll just get another company.
 
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#25
#25
Might check with Cate Russell Insurance Agency in Maryville. They are an independent agent that can get you quotes thru several companies with one phone call. My home/auto/umbrella is with them and they were able to beat Farm Bureau and several others that I checked with.
 
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