Gas, food, rent- Like all else, there is no shortage of reasons your home insurance rates may have gone up, but the likely culprit in 2023 is the higher-than-average labor and construction costs due to inflation and expensive natural disasters. The same inflationary pressures that are driving up your grocery bill are now driving up your homeowner insurance rates as well. To put it simply; It is costing more and taking longer to repair your home, increasing the average cost per claim and ultimately the cost of homeowner’s insurance for everyone.
Inflation has reached its highest level in decades. Nationwide, the average cost of homeowner’s insurance has increased by 9% on top of a 12.6% increase in 2022. From worsening hurricane and wildfire seasons, the home insurance industry has experienced record-setting claim payouts and financial losses over the past few years. As a result, many insurance companies are increasing rates to pay for losses and to ensure they don’t go bankrupt after future climate disasters.
It isn't just homes at risk of hurricanes or wildfires that are paying more for insurance. As climate change continues to alter weather patterns all over the country, certain areas that insurers used to consider to be low risk are now viewed as the opposite, and homeowners in these areas may suddenly be seeing steep premium hikes as a result.
During this time especially, it’s important to know and understand the different factors that go into determining the cost of your insurance. Factors such as the age of your home, building material, square footage, coastal proximity, home security features and coverage limits, endorsements and discounts all play a contributing role.
As insurance agents, “Why did my homeowner’s insurance increase?” has been our most recently asked question. To help alleviate some of the premium increases we suggest the following:
- Increase your deductible.
- Install security devices.
- Take advantage of discounts you qualify for
- Avoid making small claims.
At Lallis & Higgins, we empathize and feel the pains of rising insurance costs - our families included. We want to help you understand the reasons behind rate increases, help you to save money whenever possible, while ensuring you are maintaining the proper coverage in the event of a claim. We are more than happy to review your homeowners’ coverage, discuss potential discounts and discuss any of your concerns. Working with Lallis & Higgins we promise to give you and your family the peace of mind that we can offer knowledgeable service, flexibility in our pricing and coverage, and are commited to helping the community.
We are honored to be your independent agent as well as maintaining your trust and support, especially during these times.