Stuff They Don't Tell You When You Buying A House

I love my new house but homeownership can be a bitch. My homeowners insurance is going through the roof. Before closing Allstate quoted me a price of $ 1200.00 for the year. Then after closing they sent me a letter saying that my home owners insurance would be going up$ 854.56 and that increase would take affect the next month.

Of course I was on the phone calling them like WTF where the hell am I suppose to get an extra $854.56. They told me that it would take 330,000 to replace my home so the rate reflected the replacement cost. I said screw the replacement cost I want enough to cover the loan and something left over to put down on something new. So finally they said they would write me a new policy that covers the loan amount and about 90,000 extra. They gave me a quote of 1250.00. Guess what, a few weeks letter I get a letter in the mail saying my insurance will increase 150.00. I was pissed; I thought why the quote and the actual price never match up.

So last night I am looking at the news and guess what? They were investigating the increase in homeowners insurance. In Missouri and Illinois home insurance rates have increases ranges from 9-60%. Insurance companies claim that in 3 years they have paid out 19 billion dollars, which rivals the 20.3 billion dollars spent on insured property loss from the 9/11 terrorist attacks.

Also contributing to the rise in premiums is……


High than normal castrophe frequency
Rising Cost of Construction and home repair
Higher home Values

I understand these issues but some of this is just the cost of doing business. Hey Allstate ever heard of collateral damage? That is what I call all the excuses you are giving me for raising my insurance. People are trying to survive and companies are thinking of reasons to suck more money out of you.

I always felt that insurance was just one big con game. You pay the premium but if you every use it your premium will increase and if you don’t use it then you just been giving away free money back. I feel the government should regulate that business. That way things could be more fair and equal for the policy holder