{"id":23499,"date":"2023-09-30T20:01:08","date_gmt":"2023-09-30T20:01:08","guid":{"rendered":"https:\/\/microloannexus.com\/personal-finance\/home-insurance-costs-are-rising-heres-why\/"},"modified":"2023-09-30T20:01:16","modified_gmt":"2023-09-30T20:01:16","slug":"home-insurance-costs-are-rising-heres-why","status":"publish","type":"post","link":"https:\/\/microloannexus.com\/?p=23499","title":{"rendered":"Home insurance costs are rising: Here\u2019s why"},"content":{"rendered":"
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Many Americans continue to get notified that their home insurance premiums are going to be more expensive.<\/p>\n

These increases are due to many factors, including rising building material costs, continuing supply chain issues and ongoing labor shortages, according to the Insurance Information Institute,\u00a0the leading national trade association of the property and casualty insurance industry.\u00a0<\/p>\n

What is causing the increase in home insurance costs?<\/strong><\/h3>\n

Loretta L. Worters, spokesperson of the New York-based Insurance Information Institute, tells FOX Business homeowners’ insurance premium rates have risen significantly due to the pandemic and the state of the U.S. economy.\u00a0<\/p>\n

“Much of the increase can be attributed to supply chain issues and labor shortages driving up the cost of home repairs and replacement costs, but also rising catastrophe losses related to extreme weather and population shifts into disaster-prone regions,” Worters said.<\/p>\n

HURRICANE IDALIA COULD COST $20B IN DAMAGES, LOST ECONOMIC ACTIVITY: MOODY’S ANALYTICS<\/strong><\/p>\n

Through September 2023, there have been 23 confirmed weather and climate disasters in the U.S. this year producing losses over $1 billion, according to NOAA.\u00a0<\/p>\n

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Home Insurance Premiums for $250,000 in Dwelling Coverage<\/h2>\n<\/header>\n
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$1,428 per year vs. $1,383 last year\u00a0<\/p>\n<\/div>\n

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$119 per month vs. $115 last year\u00a0<\/p>\n<\/div>\n

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Source: Quadrant Information Services via Bankrate.com<\/p>\n<\/div>\n<\/div>\n<\/section>\n

These trends \u2014 rising costs of building materials, appliances and labor; rising insured losses related to extreme weather; and population shifts into disaster-prone locales \u2014 predate the pandemic and are unlikely to go away after COVID-19 and its disruption of the global economy fades into history, according to Worters.\u00a0<\/p>\n

“This is why homeowners\u2019 insurance premium rates will need to increase in the years ahead,” Worters told FOX Business.<\/p>\n\n\n\n\n\n\n\n\n\n<\/tr>\n<\/tbody>\n<\/table>\n
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How do home prices impact homeowners\u2019 insurance rates?\u00a0\u00a0<\/strong><\/h3>\n

According to Worters, the replacement cost of your home has an impact on homeowner rates, not how much it sells for on the real estate market.\u00a0<\/p>\n

“Replacement cost refers to the amount it would cost to rebuild your home with construction materials of similar type and quality,” she added.<\/p>\n

MORTGAGE RATES HIT 23-YEAR HIGH<\/strong><\/p>\n

Replacement Housing Costs<\/strong><\/h3>\n

Some of the factors include the type of exterior wall construction \u2014 frame, masonry (brick or stone) or veneer. For example, a brick home in Long Island would be less expensive if that same home were built in Los Angeles because of the potential for earthquakes and how that home would hold up in that area, Worters explained.<\/p>\n

Other factors:<\/p>\n

Ticker<\/th>\nSecurity<\/th>\nLast<\/th>\nChange<\/th>\nChange %<\/th>\n<\/tr>\n<\/thead>\n
AON<\/td>\nAON PLC<\/td>\n324.22<\/td>\n-5.12<\/td>\n-1.55%<\/td>\n<\/tr>\n
MET<\/td>\nMETLIFE INC.<\/td>\n62.92<\/td>\n+0.03<\/td>\n+0.05%<\/td>\n<\/tr>\n
AIG<\/td>\nAMERICAN INTERNATIONAL GROUP INC.<\/td>\n60.60<\/td>\n-0.68<\/td>\n-1.11%<\/td>\n<\/tr>\n
PRU<\/td>\nPRUDENTIAL FINANCIAL INC.<\/td>\n94.90<\/td>\n+0.05<\/td>\n+0.05%<\/td>\n<\/tr>\n
ALL<\/td>\nTHE ALLSTATE CORP.<\/td>\n111.41<\/td>\n-1.15<\/td>\n-1.02%<\/td>\n<\/tr>\n