My manufactured home has been insured with Foremost Property and Casualty Insurance Company since it was new in the spring of 2006. In 2012 I paid $393 annual premium. Recently, I received notice that the annual premium for 2013 would rise to $558, which is an increase of 42% from 2012. At the same time, there has been only a 2.7% increase in coverages from 2012 to 2013.
I asked for an explanation of the exorbitant increase, and in reply I received a patronizing letter restating the annual coverages from 2006 through 2013, and the annual premiums from 2006 through 2013, (information I already had in my records) completely glossing over the exorbitant increase from 2012 to 2013. The writer claims that "It is never easy to make a decision to establish the price's [sic] for our policies..."
I would have thought some science would go into that decision - sounds like Foremost is just flipping coins or drawing numbers out of a hat. The writer goes on to say that the company tries "to keep our expenses, like postage and utilities, under control so we can minimize price changes." Postage and utilities have risen over the last year, but not by 42%. Finally, the writer states something about "steadily increasing losses." Well, not in my neighborhood.
Seems to me I am in a relatively low-risk area with relatively low premiums, which is as it should be. But because my premiums are relatively low, I am also a good target to pick up the tab for the company's losses elsewhere, e.g., hurricanes? Also seems to me the company did not charge enough in high-risk areas to cover those (foreseeable) losses. I'd like to know whether Foremost is now stepping up to the plate to pay those losses? Or are they denying claims while raising premiums based on those claims?
Seems to me the company is just poorly-managed. Fortunately, I have a couple of months until the policy renews, so I can and will shop around. I do not have a mortgage on the home, so carrying homeowner's insurance is optional. Probably better to let the coverage lapse than to continue paying an insurance company that cannot cover losses.