Insurance shock

[Amrita]

Have had thru Atlas Insurance Broker (used to have Hilo office, now HNL) DB Insurance, out of Korea but office in HNL that they will NON-RENEW any H/O policies with a dwelling Coverage below $400,000; thats weird to me.  My H/O insurance (lava zone 3) has been in the range of $500-$585 a year, up about $20 each year.  I've been covered continuously since 2002.  So last year with DB $585 and now Atlas says they have spoken with various carriers and now they are "able to offer": a policy with RLI Insurance a financially strong company etc. 
Well just got the bill for 2024 May thru 2025 May.  Rate almost tripled to $1343.  Course multiple exclusions, no flood, no earthquake etc. 
I've never had a claim in these 22 years here. 
Is anyone else experiencing such an inflation surprise?   What the H is going on?

[MyManao]

What the H is going on?

Global warming. Simple as that. The insurance industry can not make the same profits they made before and as such the industry is adjusting, and I'd speculate collapsing. And, like it or not, the first to feel the effect are those in areas most effected. And, our volcanoes, although they are not from the same source, still pose the same higher risks.

I suspect, would assume, it's going to get worse. As I said, they can't make the profits their shareholder's are used to. As such, either find a way to do without or lobby State to beef up HPIA by making it a broader organization that services all high risk areas, not just volcanically, otherwise it too will fold. After all the state ain't underwriting anything themselves.. just corralling others to do so.. and that pool has to be really large otherwise it won't be profitable, and will fade away.

[Amrita]

I am considering becoming self insured and just dropping it all together. I may try to negociate but they didn't have any space like car insurance to adjust coverage.

[HereOnThePrimalEdge]

I may try to negociate

It’s possible, I did for many years.
Your house value is based on averages.  The most valuable areas are kitchens and bathrooms.  They are designated as a % of your total square feet.  If your kitchen + bath is a greater % than the average that’s a point of negotiation.  The value of your contents are also a set % of the total square feet.  There’s a book called the National something something, I can’t remember the name but perhaps someone else here will.  If you quote that title while talking with your insurance company rep they will think you know what you’re talking about, the tone in their voice changes.

I finally made such a nuisance of myself, they gave me the name of the head guy at RLI who let me set my insurance at whatever I wanted every year, no matter what the bill was adjusted to on renewal.  He gave me his direct line and personal email address so it only took a minute.  Alas, he’s retired now but if you politely persevere you might get through to the new head guy.

[Punatang]

What the H is going on?

Sorry about the shock. Yes, many of us are dealing with this. You are not alone. We feel your pain. What is going on is the value of your dollar is being destroyed. In the 20 year span you mention, the cost of real estate on our island has quadrupled. The cost to build has doubled in just the last handful of years. Your insurer has to rebuild your house if it burns down or is otherwise destroyed. So it's mostly about the cost to replace your structure and possessions. There are other minor factors and nuance but mainly it's the same inflation you see all around us. Best wishes for the best possible outcome. It's not fun.

[macuu222]

You can bring the cost down by increasing your deductible. They raised my homeowners insurance right after I filed a claim for windstorm damage so I increased my deductible to $1000.00 from $250.00. It made quite a difference!

[punikahakaiferret]

There is currently a thread on Nextdoor regarding a group interested in starting an insurance co-op...there isn't contact info for the thread-starter, only a request to send her your email address or PM her thru Nextdoor. Don't know how many folks here on Punaweb are also on Nextdoor, (since it really is nothing more than a mini Facebook), but in this case it might be a good opportunity to look into what could be an alternative.

Something *definitely* needs to be done, but the way things move here; at the speed of Hawaii bureaucracy, getting anything done on the governmental level is about as likely as an alternate route out of Puna anytime in our lifetimes. *sigh*

[Amrita]

You can bring the cost down by increasing your deductible. They raised my homeowners insurance right after I filed a claim for windstorm damage so I increased my deductible to $1000.00 from $250.00. It made quite a difference!

Deductible???  We are not talking car insurance but homeowners insuirance, I looked thru all 22 small print pages and found nothing about a deductible.  Maybe it's there but i cannot find it.
 

[kalianna]

The deductible should be in big print. Thereʻs a deductible on all kinds of insurance-- home, auto, medical. Your agent should be able to tell you what it is very quickly.

[leilanidude]

insurance co-op
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No possible way to make that work in a high-hazard area. It is simple math.