You may have noticed that your home insurance premium has gone up. You are part of the 90% who have seen an increase this last year, according to Policygenius. There are several factors that have led to the price increase.
- Natural Disasters: In 2021, over $92 billion of insurance funds were needed because of severe weather, forest fires, and earthquakes. Some of these disasters include the winter storm that hit Texas, Hurricane Ida in Louisiana and Hurricane Ian in Florida.
- Supply Costs: Some of the price increases can relate back to COVID and the rising inflation. Supply prices have been going up as there has been a shortage of materials. Lately, there has also been a shortage of skilled laborers. Wages for workers and their insurance costs went up around 5% throughout 2022.
- Higher Insurance Claims: This factor is basically because of a combination of factors 1 and 2. In 2022, claim were higher. Some of these increases were due to higher supply costs to repair or rebuild structures. These costs are expected to go up as years go on.
Read the Original Article Here: Did Your Homeowners Insurance Rate Go Up Recently? Here’s Why and What to Do