[Drew]

Curious how is handling the perpetual rise in homeowners insurance. We have seen a ridiculous rise almost each year since purchasing our current AZ home in 2020 (note, the rise in 2022-2023 was due to changing coverage types):

2020: $819
2021: $1,249
2022: $1,649
2023: $1,849
2024: $2,577

I realize these rates may be higher or lower than other states, but the concept remains the same. Is there a solution out there except “change insurance companies?”

I’m wondering if there’s a way around these insurance increases or are we just forced to pay.

Any thoughts?

[Karen]

Be your own insurance, have enough to completely replace your home or any liability yourself.

Also be mortgage free, bc a bank or lending company will need proof of insurance for the loan.

[Brandon]

Shop your insurance needs each year using an independent broker. It can be a pain for a few days administratively, but more often than not, saves you thousands of dollars (for home, auto, umbrella).

[Rick]

Hold your insurance commissioner’s (whatever they may be called in your area) feet to the flame of unhappy constituents.

A large part of what has happened and is happening is regulation driven and how it created these odd shape/size boxes for insurers to fit into and perverse incentives on how to manage risk vs price.

And while “I am unhappy” is a decent message to them, I expect more impactful will be expanding on how it may be impacting your budget, your decision to live there, your ability to upgrade houses, and your desire to encourage friends and family to move to the area.

And raise your deductible.

[Frank]

Increase deductibles, shop your policies and bundle with other coverages. Use a local broker in addition to any DIY efforts you may be doing.

This is yet another reason why your residence is more of an expense than an asset.

If the value of your house goes up, guess what? So do your insurance, tax and maintenance bills and you must pay more to live there.

[Garrett]

Increased my deductible and my policy was about $2300 from $1800 last year

[Haseeba]

In houston it’s insane especially combined with property tax increase. A 450k home the tax and insurance combined is over 10k in houston suberbs

[Author]

Posts