Home Owner Insurance Rates Increase in TN?

[ruger1234]

I’m in Blount county and have FB. I believe it was back in 2012 that the hail storm hit, probably 80% of the homes in my subdivision got new roofs. My claim was nearly 20k, my rate has still stayed the same.

 

[VolStrom]

I’m in Blount county and have FB. I believe it was back in 2012 that the hail storm hit, probably 80% of the homes in my subdivision got new roofs. My claim was nearly 20k, my rate has still stayed the same.

I remember that storm. Luckily my area was not affected and new roofs weren't needed. But, that was several years ago, what changed in the last year to jack my rate up 25%?

I've thought enough about it that I'm just going to get a new insurance company with the cheapest rate. I think Farm Bureau has joined the rest of the insurance companies in TV commercials to sell insurance.

 

[Jxn Vol]

Mine went up 35%. I have been with FB for over 20 years. They gave me a few reasons. 1 was I lost a claim discount due to a roof claim, which I understand. But 1 that confused me was something called insurance scoring. My agent said they used a 3rd party for this insurance scoring. He couldn’t tell me what factors were used to “score”.

He recommended we lower my home’s coverage to offset the rate hike. I didn’t like this idea. I plan on shopping my coverage now.

 

[volwindy]

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.

I'll be curious about USAA's rates. We shop around each year and always include them since we are members and have our cars through them, but for whatever reasons, even with a multiple policy discount, they are still quite a but more expensive and with less coverage.

 

[GAVol]

He recommended we lower my home’s coverage to offset the rate hike. I didn’t like this idea. I plan on shopping my coverage now.

You should leave that guy tomorrow. Just horrible advice.

 

[1972 Grad]

Mine went up 35%. I have been with FB for over 20 years. They gave me a few reasons. 1 was I lost a claim discount due to a roof claim, which I understand. But 1 that confused me was something called insurance scoring. My agent said they used a 3rd party for this insurance scoring. He couldn’t tell me what factors were used to “score”.

He recommended we lower my home’s coverage to offset the rate hike. I didn’t like this idea. I plan on shopping my coverage now.

I don't know how they determine insurance scoring either, but my agent said that a lower number is better, and that I had the lowest he had ever seen. Don't ask me why.

 

[GAVol]

I don't know how they determine insurance scoring either, but my agent said that a lower number is better, and that I had the lowest he had ever seen. Don't ask me why.

It's basically where they take credit scores in conjunction with claim history and predict the probability of future claims.

 

[MR_VOL]

You should leave that guy tomorrow. Just horrible advice.

I agree. More money for less coverage certainly does not work in my book.

 

[VolStrom]

It's basically where they take credit scores in conjunction with claim history and predict the probability of future claims.

So are you an insurance agent? You don't have to say where, just yeah or nay.

 

[GAVol]

So are you an insurance agent? You don't have to say where, just yeah or nay.

I am. I really don't deal much in personal lines anymore, but I did for a long time.

 

[Jxn Vol]

It's basically where they take credit scores in conjunction with claim history and predict the probability of future claims.

That makes sense a little bit. I had a 60K water claim a few years ago. And a roof from storms this spring.

Our credit is really good though. That is the puzzling part.

 

[Jxn Vol]

You should leave that guy tomorrow. Just horrible advice.

In his defense we may have been slightly over insured. I think he was throwing out various options to look at because he knew I was about to shop my business.

 

[GAVol]

In his defense we may have been slightly over insured. I think he was throwing out various options to look at because he knew I was about to shop my business.

Just be careful. There's likely no amount of toying around with your Coverage A amount that's going to overcome a rate increase like that without making it artificially low.

 

[Jxn Vol]

Just be careful. There's likely no amount of toying around with your Coverage A amount that's going to overcome a rate increase like that without making it artificially low.

Thank you for your advice. I am very wary of this. I think he was trying to soften the blow knowing he couldn’t bridge the gap completely. But I am not going to even consider this at all. Again, thanks much.