by Andrew J. Hofman
November 18, 2024
Introduction:
Read more here: https://theconversation.com/americans- ... e-241772(The Conversation) Home insurance rates are rising in the United States, not only in Florida, which saw tens of billions of dollars in losses from hurricanes Helene and Milton, but across the country.
According to S&P Global Market Intelligence, homeowners insurance increased an average of 11.3% nationwide in 2023, with some states, including Texas, Arizona and Utah, seeing nearly double that increase. Some analysts predict an average increase of about 6% in 2024.
These increases are driven by a potent mix of rising insurance payouts coupled with rising costs of construction as people build increasingly expensive homes and other assets in harm’s way.
When home insurance averages $2,377 a year nationally, and $11,000 per year in Florida, this is a blow to many people. Despite these rising rates, Jacques de Vaucleroy, chairman of the board of reinsurance giant Swiss Re, believes U.S. insurance is still priced too low to fully cover the risks.
It isn’t just that premiums are changing. Insurers now often reduce coverage limits, cap payouts, increase deductibles and impose new conditions or even exclusions on some common perils, such as protection for wind, hail or water damage. Some require certain preventive measures or apply risk-based pricing – charging more for homes in flood plains, wildfire-prone zones, or coastal areas at risk of hurricanes.
caltrek’s comment: A component of inflation is high insurance costs. Looking at the map provided in the linked article, it is predominantly red states that are suffering the highest insurance costs. Ann exception being northern Midwest states like Montana, Idaho, Wyoming and the Dakotas. Progressives have been warning for decades about the likely effects of global warming, including probable high insurance payouts. Who gets blamed for these inflationary insurance costs?
Progressive Democrats, of course.