Why is my Homeowners premium going up? – Alvin TX

auto and home insurance in Alvin TX



In June 2021, the following question was asked, “Why is my homeowners premium going up?” There are many issues creating the premium increases. Since Independent Insurance Counselors is located near the coast, a large portion of our homeowners insurance clients are located in tier one. That means their homes are located in a county like Brazoria or Galveston County that borders the Gulf of Mexico. As a result, the windstorm peril greatly affects the insurance premium for homes in first and also second-tier counties like Harris and Fort Bend.
So let’s start with the windstorm peril. The majority of insurance companies buy insurance to protect themselves from catastrophic losses. It’s called reinsurance, and reinsurance is a major expense to the insurance companies. Since the reinsurance cost is passed on to the consumer, the reinsurance cost is a major factor regarding your homeowners premium rate.
Now let’s look at the hurricane history for the United States over the past 10 years. The first five years, from 2011 through 2015, we had an average of two major hurricanes per year. The loss history was low. As a result, the cost of reinsurance became very cheap, and your homeowners premium should have dropped a few years ago. Unfortunately, the next five years, we were not as lucky. 2017 was the most costly property damage hurricane season ever. And not to be outdone, 2020 set a record with 30 named storms, including 13 hurricanes, with 12 of the hurricanes making landfall.
Think about it. Louisiana was hit by five hurricanes in 2020. While the entire East and Gulf Coast only average two major storms annually from 2011 through 2015. The catastrophic losses went way up, and the reinsurance rates and your homeowners rates followed. The bottom line is the homeowners product is not as profitable to the insurance companies as it was five years ago. And with the recent freeze, 2021 is not looking very profitable to the carriers either.
Another big factor is COVID-19. All of the shutdowns have created a shortage of construction supplies. You used to be able to get a sheet of OSB for $7. I bought a sheet in March. It was 37 bucks. The point is the cost of the building materials has caused the replacement cost of your home to go higher.
For instance, our office was working on a commercial account that had a small building. The renewal was in four months. Prior to quoting the insurance, we ran a replacement cost estimator. The client liked our proposal but wanted to wait until their renewal date for us to bind the new coverage. So close to the renewal date, another replacement cost estimator was done. The replacement value had gone up over 6% in only four months. As a result, if in a year, your insured value goes up, let’s say 15%, you should expect your premium to go up 15% too.
So if you’re expiring policy is $2,000, and your insured value goes up 15%, a $300 minimum increase should be expected on your renewal to adjust for the increased replacement cost. Fortunately, there are things that you can do to stabilize your premium and weather this storm. And if you need assistance, contact us at your convenience and take care.

Call Independent Insurance Counselors in Alvin TX at (281) 331-3131

BIG Revelations from

other customers

Have always been helpful and easy to get in contact with.
J Smith
J Smith
Very nice staff and very quick to help with any needs I might have.
Emily Guzman
Emily Guzman
They have always been responsive and helpful and gotten me good prices.
David Smoot
David Smoot
IIC has been our homeowner insurance provider for 40+ years. Mike and family have helped us through flood and wind all that time and I’m grateful for their support.
Sandy Horine
Sandy Horine
Everyone of you keep me taken care of and i appreciate all you do for me
lindia ward
lindia ward
Great insurance company always friendly and helpful
Jeffrey Lewis
Jeffrey Lewis
I have done business with Independent insurance for 30 years and have been served well. They are dependable and will help you in any way they can.
Pam Waters
Pam Waters
Great experience. Amber found me a more comprehensive policy for less money. Followed up with me in a timely manner.
Gerald Enochs
Gerald Enochs
Mike Lansford and the friendly and competent staff at Independent Insurance Counselors in Alvin have been serving our family for over 20 years. Having used them for our homeowners, automobile and health insurance needs, they have helped us deal with issues small (fender benders) and large (Hurricane Ike). Mike has offered us good advice on repeated occasions. He is trustworthy, competent, and customer oriented. Highly recommended!
Mark Mayberry
Mark Mayberry
They have been our insurance go to for over 20 years!!!!! Everyone is so helpful!!
Tom Selleck
Tom Selleck
We have always been treated as valued customers and they have always found us great rates. They are very helpful in finding out the best solutions to meet your needs.
Ben Harris
Ben Harris
I have been doing business with Independent Insurance Counselors for many years. I have my home and car insurance through them. They are very efficient and thorough and I would not think of having any other company handle my insurance affairs. They have always done a great job for me.
Debra Fischer
Debra Fischer
I have been a happy customer of Independent Insurance Counselors for years now and the staff must certainly be hand picked for knowledge, courtesy, friendliness and among many other fine qualities, their eagerness to stay on top of making sure their customers always have the lowest rates. I have always been that person who feels a bit of resentment paying for a service you never use or hope you never need but with Independent I always feel like my money’s going a long way.
Sherma T
Sherma T
I've been with Independent Insurance for many, many years and I'd never want to go with any other company. They're unfailingly courteous, professional and friendly. Their customer service is fantastic!
Michelle Smith
Michelle Smith
saved me a lot of money and great service
nancy ferverda
nancy ferverda
Many markets to choose from. The staff is knowledgeable and looks out for your best interests. Quick response time. Reviews my policy at renewal time and informs me of other options that will save me money!
Amber Stavinoha
Amber Stavinoha
Went to Independent Ins. Counselors after being with my Ins.co. for 40 yrs.. they changed hands and my premiums went off the charts. They would not work with me. The counselor Rhonna at Independence worked so hard and saved me somewhere around $1,000 a year between my home owners and car policies. Thank you guys.
Gladys Dekenipp
Gladys Dekenipp
Very friendly, knowledgeable and helpful. They explained the different coverages to us and then shopped the numerous companies they represent to find us the best deal to meet our needs. We are very satisfied with the service Independent Insurance Counselors provides. They handle our home, auto and life insurance.
Karen Duston
Karen Duston
Ownership of Agency has been same family and staff for many years with complete regard for their insured clients. One of the last complete, full service, independent insurance agencies still in our area.
J. R. Dick Tyson
J. R. Dick Tyson
Bundled all my insurance needs. Excellent service and support with fair pricing.
mike clawson
mike clawson
ALWAY BEEN THERE FOR US.
TERYXNRA
TERYXNRA
When I call and talk to Becky I get great service. I've been talking with her for years. Dedicated %1000.
A Ernst
A Ernst
Got us the coverage we needed.
David Boren
David Boren
I was really impressed with how detailed Mike was going over each option individually. When evaluating car insurance in the past, there was no good way to know how different choices affect the premium you pay, but Mike went through methodically and made sure I had the best coverage for the money. I got better coverage for the things I needed (and removed stuff I didn't need) and saved a lot of money.
Bobby Guy
Bobby Guy
I had an excellent experience with Independent Insurance Counselors. I am new to Texas and needed to revise my auto insurance to comply with Texas. Rhonna Benbrook was very friendly, professional, and helpful in getting everything taken care of. Thank you Rhonna & Independent Insurance Counselors.
Frances Huff
Frances Huff
Mike Lansford recently helped us with Medicare Part B and D supplemental insurances. In fact, all of our insurance is through Independent Insurance Counselors. Mike and his staff have always been of great help, and, we have been with them for many years. You cannot go wrong in getting them to assist you with any of your insurance needs.
patti369
patti369
Hometown business. Friendly staff
Patrick Butler
Patrick Butler
Friendly staff
Mitchell Craven
Mitchell Craven

(281) 331-3131

302 South Gordon St. | Alvin, TX. 77511