Home Insurance // Notice of Non-Renewal

[Tex Koder]

Just received a Notice Letter..

Wouldn't you know it..
Right Before Christmas too...

Non-Renewal Reason:
Reduction of high-hazard relative exposure to catastrophic events

No other details given.



What sort of "Catastrophic Events" are they expecting to happen..?
That they are not telling us??


Has anyone else Ever received such a letter before?

 

[dure16]

Non-Renewal Reason:
Reduction of high-hazard relative exposure to catastrophic events

Any chance there's a new Taco Bell in your area??

 

[gotnitro]

Just received a Notice Letter..

Wouldn't you know it..
Right Before Christmas too...

Non-Renewal Reason:
Reduction of high-hazard relative exposure to catastrophic events

No other details given.



What sort of "Catastrophic Events" are they expecting to happen..?
That they are not telling us??


Has anyone else Ever received such a letter before?

So, they just dumped you and now you have to go looking for insurance? You in TX right? Hmmmm.. Wonder what that's about.

 

[CrashBoom]

Wow, that's a whammy to be hit with. I don't know what type of catastrophic events they're expecting in Dallas of all places ...

Maybe somehow related to the disconnected power grid in Texas?

You got me.

 

[Tex Koder]

So, they just dumped you and now you have to go looking for insurance? You in TX right? Hmmmm.. Wonder what that's about.

Wish I knew!

Something Major is about to happen that somebody 'in the know' isn't telling the rest of us??

 

[LibertyMKiii]

Just received a Notice Letter..

Wouldn't you know it..
Right Before Christmas too...

Non-Renewal Reason:
Reduction of high-hazard relative exposure to catastrophic events

No other details given.



What sort of "Catastrophic Events" are they expecting to happen..?
That they are not telling us??


Has anyone else Ever received such a letter before?

Probably just weighing out the risks and age of the home is the big consideration.
Our new home was $1,200 to insure in 2019. Once it reached 3 years old it jumped to $2,300 yearly.

At some point they know you will need a roof and could have a water heater go out causing water damage. Backed up swear pipes or slab leaks. Possible foundation issues and they say not worth the yearly premiums to insure this home....

 

[RCbuzz]

With the blackouts over in Texas wasn't there a bunch of damage caused by frozen pipes? I might be off base there.

I recall Florida has been having insurance issues as well. I think they are constantly assessing risk. Regardless, I hope you get it figured out Tex!

 

[Camaroboy383]

What the heck.. that's wild.. do you hold the note on your place? Or is it through the mortgage company?.. actually, wait.. you don't have to answer that here...

Definitely get on the horn to get an explanation out of them if you can..

 

[Steve B in Vegas]

https://www.texastribune.org/2023/11/30/texas-homeowner-insurance-climate-change-costs/

Insurance companies dropping home coverage in some states has been going on for while now. Farmers pulled out of Florida: https://www.cnn.com/2023/07/12/business/farmers-insurance-florida/index.html

and California as well: https://thebusinessjournal.com/farmers-direct-insurance-latest-to-pull-out-of-calfiornia/

Texas is subject to some tricky weather and I believe this is the main driver. I have not dug into many of the details, but it appears that the cost of replacing homes or at least doing extensive damage repair is not proving to be worth the customer base in those areas.

There were some excellent articles written about rebuilding the same home multiple times in Florida and the Gulf Coast states, and how insurance companies started paying attention to these multiple claims on a single property. It only takes a handful of CPA ninjas to quickly comb through some data and give the shareholders a feel for how much money they are making / losing in these markets.

I don't have a dog in this hunt, but I'm confident it's nothing more sinister than basic math and accounting.

s.

 

[cazrack]

I don't live in US but intresting, I wonder what the insurance cost is in states with colder weather where there is very little natural disasters.

 

[CrashBoom]

but I'm confident it's nothing more sinister than basic math and accounting.

Exactly. Though, actuaries can be kind of sinister

 

[Smilinbri]

I believe it has to do with the ins company and not you. They need to protect their reserves (money they are required to keep "on hand". It's a percentage of policy amounts they carry.... something like that.).

They will start non-renewing policies in certain areas to lower their total policy amounts to achieve a better reserve/policy$$ ratio.

Not 100% certain on details, been a while since I was in insurance for a bit, but I believe that's what your notice means.

It's business for them. Does suck. Sorry they did that to ya. We've had Erie ins for decades and love em. Never had an issue, but also, haven't had to file a claim yet.


Side note....They will get you on the roof in most areas. My parents got a letter stating if they didn't replace the roof, they weren't going to renew theirpolicy. So they had to replace it. I mean, it was about time, but it still had some years left.

 

[JPWSRC]

Just received a Notice Letter..

Wouldn't you know it..
Right Before Christmas too...

Non-Renewal Reason:
Reduction of high-hazard relative exposure to catastrophic events

No other details given.



What sort of "Catastrophic Events" are they expecting to happen..?
That they are not telling us??


Has anyone else Ever received such a letter before?

It's been a reality in Florida for the last 20 years. They're divesting because climate change is real and they don't want the liability. Argue all you want, we are facing more extreme weather events globally and the insurance industry is covering its azz because of it.
In my case I've been dropped ( non-renewed) several times, and am currently on the states last resort; Citizens property insurance, which is backed by the state but won't have the resources to cover another major weather related catastrophe when it happens. I won't even get into the states handling of this mess dare I be labeled as "Vermin"...

 

[jkflow]

Ditto in Florida and even Citizens kicked me out today, need to move to a private company by Jan 9th, luckily they have to find me one.
Insurance doubled every year for past 3 years. 2024 premium went to $6k before moving to citizen. It was 1100 in '21 and prior.

 

[JPWSRC]

Ditto in Florida and even Citizens kicked me out today, need to move to a private company by Jan 9th, luckily they have to find me one.
Insurance doubled every year for past 3 years. 2024 premium went to $6k before moving to citizen. It was 1100 in '21 and prior.

That gonna hurt, they are allowed to add 20% to your rates or keep you... Mine increase in the last 13 months ( or two payment cycles 23 and 24') by 35%.
Hold yer boot straps, cause they're lookimg for another large increase in the next month or so.

 

[Doom!]

Well obviously it's because your in a border state and phase 2 of the invasion wil be starting soon.

What a pain in the tail end. Did they at least give you a decent amount of time to find new coverage?

 

[Tex Koder]

Well obviously it's because your in a border state and phase 2 of the invasion wil be starting soon.

No doubt!
Either that or the space invaders are about to announce their arrival...

What a pain in the tail end. Did they at least give you a decent amount of time to find new coverage?

Not really.
By the end of Jan. 2024
Which is the original end period of our policy.
They could of at least given us another month or so..

 

[Doom!]

No doubt!
Either that or the space invaders are about to announce their arrival...




Not really.
By the end of Jan. 2024
Which is the original end period of our policy.
They could of at least given us another month or so..

Not much time. I can only surmise that the are a bunch of poop heads!

 

[Jamr]

This is happening to almost everyone here in California. I just lost our Farmers policy on a second home as they have pulled out of the state.
The real eye opener is seeing the cost of new insurance.
This crap will price a lot of people out of their home. Good luck!

 

[JPWSRC]

No doubt!
Either that or the space invaders are about to announce their arrival...




Not really.
By the end of Jan. 2024
Which is the original end period of our policy.
They could of at least given us another month or so..

I dunno whether to laugh, or be pissed off for you at this reply?
We get something like 60 or 90 days notice here.

Remember when car insurance premiums decreased the older your vehicle was...?