Home Insurance increased 56% over 3 years

[stella55]

Our home insurance renewal just arrived. It is 14% higher than last year, and a whopping 56% higher than we paid in 2020, despite not having had any claims. After calling the broker I heard the predictable story about “costs of materials, labour, rate of inflation, etc.” I am not an economist but am fairly confident that inflation has not increased by 56% over the past 3 years. Also, although the cost of building materials skyrocketed during the first year of Covid, they did recede somewhat since then. I just cannot see the justification for this amount of increase. We asked about other ways to reduce the premium with this company such as raising the deductible, but were told that it would not have a significant impact. My location is eastern Ontario. Is everyone else experiencing this and did you find any better deals by shopping around?

 

[monicaduncan]

@stella55 I use a broker, sounds like you do as well? I renewed in May and mine only went up slightly. I'd maybe try another broker?

In relation to building materials I'm a commercial construction estimator, I was buying a 3-5/8" metal stud for $0.41 per LF in Jan of 2020, today I pay $0.75 per lf for that same stud and that's with prices dropping over the last 6 months. I used to pay $0.24 a sf for insulation in 2020, today I pay $0.40 for that same product. Materials are a lot more than they were pre-covid.

 

[savedsue]

@monicaduncan Yeah, when things went up I didn't see them willingly dropping them back down to "pre" levels. It really was a gift to suppliers (albeit with realized increases on their end as well).

 

[monicaduncan]

@savedsue 100%, The manufacturers have used the supply issues to straight up abuse the level of increases to pricing. There is no doubt that supply constraints at the time affected pricing but they used this as an opportunity to straight up gouge consumers. I believe we're seeing the same thing in the grocery stores.

 

[tlee5656]

@monicaduncan I think a lot of it has to do with making up for “lost” profit over COVID. A lot of companies probably have debt payments they need to catch up on, which means they need to fill a shortfall somehow

 

[savedsue]

@monicaduncan Agreed. Elevation and lack of reduction after supply chain correction.

 

[resjudicata]

@monicaduncan Agreed. There is a whole lot of lying going on. Covid is going to be the excuse to be butt fucked for the next 10 years.

 

[jay1971]

@monicaduncan They continually adjust the 'basket of goods' so the CPI stays palatable. Actual inflation is worse than anyone official claims.

But hey, we can buy cheap TVs. So inflation isn't that high. /s

 

[scottfree00]

@jay1971 Hey there’s a computer in your phone and a screen in your brand new car (both of which you can’t afford) so everything is fine.

http://www.shadowstats.com/alternate_data/inflation-charts

 

[jay1971]

@scottfree00 In 2021 I had come across an article, didn't bookmark it and never found it again, that stated based on the 1970s calculation inflation was in the high 20s.

Anyway, I bookmarked that link because it confirms a lot of what people are actually experiencing.

 

[ek2013]

@monicaduncan They are only coming back down if we get a hard landing recession and demand dries up.

 

[chrisjames82]

@monicaduncan I buy alot of the large materials for infrastructure lol prices are insane even for simple things like pipe or steel lol. Let alone transformers etc

 

[lashla]

@monicaduncan The suppliers, like the developers, and real estate agencies, have all arrived at the 'if we throttle the industry - we can control the prices'. Capitalism 101.

 

[whosetalkingnow]

@monicaduncan Sneak in climate change and you will get this post to the top

 

[mss91z28]

@whosetalkingnow Found the gun nutter Conservative.

 

[whosetalkingnow]

@mss91z28 No, and I don't have a gun. I don't believe the increases are due to climate change and more tied to inflation. I think it's a lazy excuse to blame it on climate change. But you can continue to believe that it's climate change and if you do you should know it's already too late because you're not going to change China's mind.

 

[donaciemento]

@stella55 Work for an insurance company in Ontario, we’re actually paying out 109% of premium brought in right now so expect prices to continue to go up.

 

[bible_mum]

@donaciemento How is that possible?? What major events have occurred to cause such a large number of claims? Do you do auto and property?

 

[baberean]

@bible_mum https://www.ibc.ca/news-insights/ne...-year-for-insured-damage-in-canadian-history#

 

[natus]

@bible_mum Derecho, wildfires, tornados, flooding.