Where you live, & Hike in Home Owners Insurance?

[Gayle in MD]

I'm wondering how the insurance companies determine charges for various parts of the country.

When Isabel came up the Chesapeake Bay, Annapolis, and some of the residential land along the West River experienced flooding. In Deale Md., low land area, just south of my home in West River, 87 homes were destroyed due to the flooding.

This year my home owners insurance went up $600.00, which I assume could be because of hurricanes in other parts of the country. Does anyone know how Insurance companies calculate their premiums. My home does not lay in a threatened area, but since Isable hit several years ago, and premiums didn't go up until this year, am I correct in assumming the price hike is due to Hurricanes in other states?

Has anyone else experienced a similar hike, and if so, where do you live?

Thanks, /ccboard/images/graemlins/grin.gif
Gayle in Md....

[BooBoo]

I have lived in southeast Michigan for the last 13 years. At first, the rates were reasonable. Now they are about three times the original. I have to pay half now and half later. I am not sure, but I think there is an insurance pool for the state and they can't lose. The more claims, the higher the premiums go. If anyone knows how it works, enlighten us please.

[PoolFool]

I don't know about your state but insurance is higher in differen't parts of Texas, depending on the risk factor. North Texas is pron to toranados and hail damage. Car insurance is cheaper in Denton county vs Dallas county.
A friend of mine moved to Ohio several years ago and started a roofing co.He came back for a visit a few weeks ago and I asked why he didn't come back to Texas and set up another company since he missed living here so much. He said he got $230 per square for roofs in Ohio and the going rate in Texas is about $140. The cost of insurance in Md. may be more because the work cost more there.

PoolFool

[Sid_Vicious]

Give it time, it takes a while for wetbacks to walk that far...sid

[ras314]

Gayle, My experience with hurricane insurance in Florida was that it covered very little of actual damage. Wind damage was covered, roofs, windows, ect. Water damage coverage was iffy and only if it was rain damage. Flood and wave damage was a different thing, some was covered if you had a seperate flood insurance. It got complicated depending on whether you lived on a "flood plain". To buy enough total coverage to replace your home from hurricane damage could probably cost enough to pay for the house in 20 yrs or so.

Insurance also increases as your assesed property value increases if it is mortaged.