S & P Global Market Intelligence(A) released a report recently showing the increase in homeowner insurance rates for the top 10 insurers between 2023 and 2024. The average increase over these two years was 24.4%. The average increase for these ten insurers over the past six years is 44.9%.
Many factors influence insurance rates. Some of these are market driven based on exposure & losses. As for you, the homeowner, the primary factors affecting policy pricing are:
Location
Coverage
Credit
Claims History
Marital Status
What options do you have as a homeowner? First, shop around. Independent Agents represent several companies and utilizing their services allows you to get multiple quotes in one place. Check rates on areas you are considering moving to. Coverages may be less flexible if you have a mortgage, but you can consider higher deductibles, and some companies offer flexibility on personal property or other coverages. With regards to claims, make sure it is worth the risk of an increase in premium for the amount you are claiming. For example, if you have a $1,200 loss and your deductible is $500, you might come out better by paying for the loss without filing a claim. You will be paying $1,200 whereas the insurer would have reimbursed you $700 if you had made the claim. However, if after filing the claim, your annual premium increases by $400, by year 5 you will have paid $2,000 or $1,300 more etc.
(A)Insurance Journal January 24, 2025
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