my home owners insurance went up and it was never used in 30 years?

Question

I have lived here for over 30 years . i live across from a canal that has never flooded in all the hurricane years here on Long Island. Now out of the blue they just Doubled it. without warning. they said they forsee a major hurricane. They have been getting rich off of all the non use of my insurance by me .This seems so unfair and how can I fight it, we all want to not move out of new york but one by one our neighbors cant afford all the nonsence anymore. I understand when one has car insurance and you have an accident and use your insurance it goes up . but we never have... PLEASE what can we do.

Answer 1

There are two major reason for this. First, the cost of everything is going up. This is called inflation. Your house is worth more, salaries have increased, building materials cost more, etc. It only makes sense that insurance would cost more.

Second, insurance companies have been forced to cover losses that they never planned on covering. Insurance companies rate a risk based on covering certain types of losses using statistics to tell them how much they will end up paying. However, people have thought that insurance should pay for everything, and courts have ordered companies to expand coverage into areas where they never intended. This increases everyone's premiums.

Answer 2

You're not alone in New York and elsewhere. I live in Wisconsin NOWHERE near any potential catastrophes, and my homeowner's insurance has increased substantially. Sad to say, we are all paying the price for the Katrina disaster of a couple years ago.

Trust me, the insurance companies right now aren't 'getting rich'. The payouts from Katrina, Rita and others just about bankrupted come insurers. Insurance is a risk SHARING concept. We are now paying because that risk became a reality two years ago.

If you want insurance, all you can do it bite the bullet and pay up.

Answer 3

OK, let's see. Is your house WORTH more than it was 30 years ago?? If so, the insured VALUE is more, and that COSTS more. I bet you're INCOME is higher than it was 30 years ago, and I know damn well a postage stamp and loaf of bread cost more.

Insurance is all about odds. Just because a horse lost a race this time, does that mean your ticket is still good? No, you have to place your bet EVERY year, and every year, the odds change. That's what INSURANCE is. Just because YOU haven't had a claim, doesn't mean OTHER people haven't had a claim.

Your way to fight this, is to shop around - go to a couple local, independent agents, and get quotes to move your insurance to another company. See what it is. Maybe you ARE being overcharged . . .maybe not. Shop around.

Answer 4

Long Island is a very hard market right now, and yes, that's mostly due to hurricane storm models.

But, to be honest with you, just because you've paid for a policy for 30 years doesn't mean you DESERVE a big pay out or an inexpensive policy. When you pay a premium on a homeowners policy it is for a one year term. Maybe you have a loss, hopefully you don't. Hopefully all you are paying for is peace of mind.

Insurance is not a lottery. Just because you pay premiums over a 30 year period is no guarantee of a big pay out someday.

Answer 5

Contact an independent insurance broker who works with several insurance companies and can find the lowest rate for you. To find a broker quickly, go to an insurance site such as http://www.homeownerswiz.com and complete the “request a quote” form. Your information will be sent to a broker in your area who has subscribed to the service, which means he or she has already paid for the privilege of helping you. The quote is free and you aren’t obligated to switch companies or anything. The information you provide can only be given to insurance professionals with the goal of helping you. It cannot be sold to telemarketing firms or anything. You won’t be put on a mailing list. Good luck!

Answer 6

Insurance costs can go up because of surcharges (generally assessed after several claims have been filed); but they can also go up by rate increases. Rate increases are determined by the economy, by the efficiency of the company, their discoveries of actuarial and potential hazard considerations, and by State Insurance Regulations.

If the increase is within the legal bounds allowed by your State, there is little to nothing that you can do. You can compare rates and change insurance companies, you can move to another location, you can [not wise] drop your insurance and take your chances, you can reduce your coverage, or you can ask the company to reduce your rate, or waive the rate increase

Answer 7

they have decided this way and you, unfortunately, can't do anything about it
if you've already tried discussing about it with your insurance and they said "no" it's not so likely they'll lower your price
you can by the way do something to lower your premium, read this article that explains which are the most important factors that may lead to a higher premium http://www.homeinsuranceguides.com/homeowners-insurance-prices/ and maybe you could do something to lower it
have you tried to see what would be your premium with other companies?
here are some from New York City you might be interested into http://www.homeinsuranceguides.com/home-insurance-quotes/?New%20York/New%20York/

Answer 8

Insurance in the state of NY has risen in some parts the companies are calling it coastal area they are either increasing or not writing in those areas and they have permission for the increase by the state.

Answer 9

Pretty much the only thing you can do is compare other insurer's rates. Maybe you'll find one that is cheaper than the one you currently have. Good luck!