Personal Finance

What is it with house insurance renewal premium increases?

  • Last Updated:
  • Jan 11th, 2023 9:35 pm
[OP]
Deal Fanatic
Jun 29, 2007
5600 posts
2143 upvotes
Vancouver

What is it with house insurance renewal premium increases?

Renewal date is early Feb on 2 houses.
Same insurer and no claim ever made with any insurance company.
67% increase on 1 house and 112% increase on the other house.

Just crazy increases. Obviously I will be shopping around for better deal.

I remember last year, with the same company, with exact same coverage, quote as a new client was lower than the renewal rate. I just bought insurance from that company as if I was a brand new client rather than a renewing client. Insurance company thinks renewing client likely will not be shopping around?
21 replies
Deal Addict
May 31, 2018
1145 posts
2878 upvotes
Yep, we saw a ridiculous (IMO) increase the last two years also, 15% then and now 20% on the overall farm/house policy. Looks like they increased the coverage of everything 5-10%, and then cranked the premiums on top of that.

Not as crazy as your numbers, but it's still causing a WTF moment.
Member
Jun 16, 2016
273 posts
302 upvotes
ottawa
I was with TD home insurance in the last 2 years until they hiked the premium this past fall. One thing I noticed was TD insurance dramatically increase the insured value of my 1 million value house to 5 million coverage, and thus they wanted to charge me almost double ( from 700 to 1200). I spoke with multiple agents and their supervisors and none were willing or able to reduce that coverage tag.

Quite interestingly I did a separate quote on the same property online and TD quoted me 900 instead, but the telephone agent claimed that’s for brand new client only.

I moved to RBC insurance and am happily paying 700.

Thus don’t hesitate to shop around. No need to waste your time and keep royalty to greedy insurance companies. We spend time churning new bank accounts, credit card SUB, so why not do the same for our home insurance policies.
Churning: CIBC Aventura VI *2, CIBC Aeroplan VI
[OP]
Deal Fanatic
Jun 29, 2007
5600 posts
2143 upvotes
Vancouver
franklin777 wrote: I was with TD home insurance in the last 2 years until they hiked the premium this past fall. One thing I noticed was TD insurance dramatically increase the insured value of my 1 million value house to 5 million coverage, and thus they wanted to charge me almost double ( from 700 to 1200). I spoke with multiple agents and their supervisors and none were willing or able to reduce that coverage tag.

Quite interestingly I did a separate quote on the same property online and TD quoted me 900 instead, but the telephone agent claimed that’s for brand new client only.

I moved to RBC insurance and am happily paying 700.

Thus don’t hesitate to shop around. No need to waste your time and keep royalty to greedy insurance companies. We spend time churning new bank accounts, credit card SUB, so why not do the same for our home insurance policies.
Thanks. I hadn't plan on getting quotes from TD and RBC but I will now.
I will double check to see if insured values have gone up. Right now, like it always has been, it is for replacement value. I know costs have gone up but I can't imagine they have gone up by that much.

My renewal premiums are $3,291.00 and $3,684.96.
Newbie
Mar 7, 2011
18 posts
27 upvotes
franklin777 wrote: I was with TD home insurance in the last 2 years until they hiked the premium this past fall. One thing I noticed was TD insurance dramatically increase the insured value of my 1 million value house to 5 million coverage, and thus they wanted to charge me almost double ( from 700 to 1200). I spoke with multiple agents and their supervisors and none were willing or able to reduce that coverage tag.

Quite interestingly I did a separate quote on the same property online and TD quoted me 900 instead, but the telephone agent claimed that’s for brand new client only.

I moved to RBC insurance and am happily paying 700.

Thus don’t hesitate to shop around. No need to waste your time and keep royalty to greedy insurance companies. We spend time churning new bank accounts, credit card SUB, so why not do the same for our home insurance policies.
I doubt the insured value has a significant difference on the premium...the odds of a $1M claim are already incredibly low, let alone a $5M claim.

I'm with TD, too (for now) - they didn't change my insured value, but they did bump up my deductible and change a bunch of other clauses (including removing a clause where certain events would be deductible free) in addition to the huge premium increase. Pretty big changes that didn't make it seem so much like a 'renewal' as a whole new product
Deal Expert
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Aug 6, 2001
17021 posts
4810 upvotes
Stuck in a Box
Almost like they want you to shop around. Try Sonnet.com, they were the cheapest for me last time.
Deal Addict
May 16, 2017
2454 posts
3226 upvotes
I'll have to keep an eye out when my policy renewal documents from TD Insurance come out (policy set to renew Feb 27).

I have a professional group rate that makes it hard for competitors to beat, but we'll see what the increase looks like this year.
Deal Addict
Dec 28, 2007
1145 posts
736 upvotes
Sonnet gave me a great price for one year, then boosted it significantly on renewal (no claims). I just switched back to TD Meloche Monnex (which I was using before) for a better rate, although I think most of the discounts are for the first year only. It looks like I may need to switch back and forth each year for the best rate.
Deal Addict
Jun 12, 2008
1525 posts
1069 upvotes
Ripley
JUnit wrote: Sonnet gave me a great price for one year, then boosted it significantly on renewal (no claims). I just switched back to TD Meloche Monnex (which I was using before) for a better rate, although I think most of the discounts are for the first year only. It looks like I may need to switch back and forth each year for the best rate.
I was just going to ask if the OP was with Sonnet. They do this with their car insurance too. Cheap the first year and then it jumps significantly in year 2.
Sr. Member
Nov 9, 2008
760 posts
411 upvotes
Ottawa
Like everything else:
Inflation due to covid supply chain issues+labour shortages+price gauging due to not much competition.

They have costs. They want profits. No reason to keep rates down.

Edit: home insurance is sometimes negotiable just like bell/rogers. Your company might reduce the price to keep you. Shop around, get quotes. Call.
Sr. Member
Aug 4, 2006
704 posts
317 upvotes
GTA - Gwilly
d5486 wrote: ... They want profits. No reason to keep rates down.

Edit: home insurance is sometimes negotiable just like bell/rogers. Your company might reduce the price to keep you. Shop around, get quotes. Call.
D5486 hit it on the head. You pay until you had enough. Then you move on.

Wash, rinse and repeat.
Deal Addict
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Jan 11, 2020
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primordialSingularit…
d5486 wrote: Like everything else:
Inflation due to covid supply chain issues+labour shortages+price gauging due to not much competition.

They have costs. They want profits. No reason to keep rates down.

Edit: home insurance is sometimes negotiable just like bell/rogers. Your company might reduce the price to keep you. Shop around, get quotes. Call.
That last one is the most major, happens with finance and telecomms since they're government protected oligopolies. Wait, insurance is finance, doh!
But if it's less than 8%, it's most likely inflation/soaring labour costs. But hey, at least with an interest rate, they can make more on their float...nominally...lol
Anything more, is just uncivilized...
Member
Oct 23, 2013
249 posts
544 upvotes
Toronto
This is crazy, the last thing I want is to shop for insurance every year like how we have to play games with the telecom companies...
Deal Addict
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Jan 11, 2020
4180 posts
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primordialSingularit…
unlocknow wrote: This is crazy, the last thing I want is to shop for insurance every year like how we have to play games with the telecom companies...
Forgot groceries in there too. Loblaws getting a bit big...Wish the votership knew basic economics and competition. We're like...drowning now with rising costs. Fewer able to afford this BS. The class actions don't pay enough lol.

What gets me is that they put an ex-VP of Telus as the head of the CRTC...More blatant than Amsterdam's Red Light District, but at least that has the knowledge and consent of the public.
[OP]
Deal Fanatic
Jun 29, 2007
5600 posts
2143 upvotes
Vancouver
weedb0y wrote: Almost like they want you to shop around. Try Sonnet.com, they were the cheapest for me last time.
LOL. My current insurer is Sonnet. Been with them for like 4-5 yrs.
Deal Addict
User avatar
May 8, 2007
1230 posts
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BC
JUnit wrote: Sonnet gave me a great price for one year, then boosted it significantly on renewal (no claims). I just switched back to TD Meloche Monnex (which I was using before) for a better rate, although I think most of the discounts are for the first year only. It looks like I may need to switch back and forth each year for the best rate.
Sonnet has also increased my cost a lot for my second year (no claims) so I’ll be checking for a better rate somewhere else. They also took several weeks to reply to an inquiry I made about insuring another property, which makes me wonder how fast they would respond if I had to make a claim.

***UPDATE*** My Sonnet insurance price increase was just under 31 percent.
Deal Expert
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Aug 6, 2001
17021 posts
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Stuck in a Box
That's bad. I think they are trying to get you out of their risk models.
Deal Fanatic
Jan 31, 2007
5020 posts
5139 upvotes
Richmond Hill
zeddy wrote: I was just going to ask if the OP was with Sonnet. They do this with their car insurance too. Cheap the first year and then it jumps significantly in year 2.
So they follow Rogers business model.
LOL
******************************************************
Bright side of RFD: Often find good deal
Dark side of RFD: Tons of stuff that I don't need but still got them because of RFD
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Deal Fanatic
Oct 26, 2008
6868 posts
2666 upvotes
BC
SquareOne will likely quote you something more like your current premium level.

But very hard to compare coverage accurately as they all do it differently. Just like buying a mattress - no direct comparisons.

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