What is it with house insurance renewal premium increases?

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Jan 11th, 2023 9:35 pm

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Jan 2nd, 2023 3:16 pm

Speedy1 [OP]: Deal Fanatic; Jun 29, 2007; 5600 posts; 2143 upvotes; Vancouver

Jan 2nd, 2023 3:16 pm

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

Jan 2nd, 2023 3:44 pm

FarmerHarv: Deal Addict; May 31, 2018; 1145 posts; 2878 upvotes

Jan 2nd, 2023 3:44 pm

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.

Jan 2nd, 2023 10:17 pm

franklin777: Member; Jun 16, 2016; 273 posts; 302 upvotes; ottawa

Jan 2nd, 2023 10:17 pm

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

+6

Jan 2nd, 2023 10:35 pm

Speedy1 [OP]: Deal Fanatic; Jun 29, 2007; 5600 posts; 2143 upvotes; Vancouver

Jan 2nd, 2023 10:35 pm

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.

Jan 2nd, 2023 10:46 pm

Singel: Newbie; Mar 7, 2011; 18 posts; 27 upvotes

Jan 2nd, 2023 10:46 pm

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

Jan 3rd, 2023 1:33 am

ADenariusSaved: Deal Addict; Jan 11, 2020; 4180 posts; 3420 upvotes; primordialSingularit…

Jan 3rd, 2023 1:33 am

Inflation and fraud (applying this term universally) is my guess...

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Jan 3rd, 2023 1:38 am

weedb0y: Deal Expert; Aug 6, 2001; 17021 posts; 4810 upvotes; Stuck in a Box

Jan 3rd, 2023 1:38 am

Almost like they want you to shop around. Try Sonnet.com, they were the cheapest for me last time.

HEATware

Jan 3rd, 2023 3:37 pm

robsaw: Deal Addict; May 16, 2017; 2454 posts; 3226 upvotes

Jan 3rd, 2023 3:37 pm

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.

Jan 3rd, 2023 5:03 pm

JUnit: Deal Addict; Dec 28, 2007; 1145 posts; 736 upvotes

Jan 3rd, 2023 5:03 pm

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.

+1

Jan 3rd, 2023 5:35 pm

zeddy: Deal Addict; Jun 12, 2008; 1525 posts; 1069 upvotes; Ripley

Jan 3rd, 2023 5:35 pm

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.

Jan 3rd, 2023 7:58 pm

d5486: Sr. Member; Nov 9, 2008; 760 posts; 411 upvotes; Ottawa

Jan 3rd, 2023 7:58 pm

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.

+3

Jan 3rd, 2023 8:45 pm

2flags: Sr. Member; Aug 4, 2006; 704 posts; 317 upvotes; GTA - Gwilly

Jan 3rd, 2023 8:45 pm

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.

Jan 3rd, 2023 11:11 pm

ADenariusSaved: Deal Addict; Jan 11, 2020; 4180 posts; 3420 upvotes; primordialSingularit…

Jan 3rd, 2023 11:11 pm

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...

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Jan 3rd, 2023 11:17 pm

unlocknow: Member; Oct 23, 2013; 249 posts; 544 upvotes; Toronto

Jan 3rd, 2023 11:17 pm

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...

+3

Jan 3rd, 2023 11:25 pm

ADenariusSaved: Deal Addict; Jan 11, 2020; 4180 posts; 3420 upvotes; primordialSingularit…

Jan 3rd, 2023 11:25 pm

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.

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Jan 4th, 2023 1:54 am

Speedy1 [OP]: Deal Fanatic; Jun 29, 2007; 5600 posts; 2143 upvotes; Vancouver

Jan 4th, 2023 1:54 am

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.

Jan 4th, 2023 5:02 am

adams7: Deal Addict; May 8, 2007; 1230 posts; 431 upvotes; BC

Jan 4th, 2023 5:02 am

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.

+1

Jan 4th, 2023 9:53 pm

weedb0y: Deal Expert; Aug 6, 2001; 17021 posts; 4810 upvotes; Stuck in a Box

Jan 4th, 2023 9:53 pm

That's bad. I think they are trying to get you out of their risk models.

HEATware

Jan 5th, 2023 10:28 am

cheapshopper: Deal Fanatic; Jan 31, 2007; 5020 posts; 5139 upvotes; Richmond Hill

Jan 5th, 2023 10:28 am

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

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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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+1

Jan 10th, 2023 4:24 pm

macnut: Deal Fanatic; Oct 26, 2008; 6868 posts; 2666 upvotes; BC

Jan 10th, 2023 4:24 pm

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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