Why Is Home Insurance So Expensive?
Homeowners continue to see home insurance take a larger bite out of their paycheck. The main driver of higher costs isn't coming from the insurance companies making a profit, but rather the rising frequency of $1B+ events hitting the US.
Source: NOAA Billion Dollar Events
The rising frequency of natural disasters affects every homeowner differently. If you live near the coast or a potential wildfire location, you could see your rates more than double as carriers run out of risk capacity to insure homes with specific risk exposures.
Largest 10 Recent Natural Disasters - 2016-2020
|2019||Missouri River Flooding||$10.9B||Midwest|
|2017||Hurricane Maria||$94.5B||Puerto Rico|
|2016||Hurricane Matthew||$10.9B||N. Carolina|
10 natural disasters caused $400B in damages in the last 4 years.
Now you know why home insurance is getting more expensive. All the more reason to make sure you are getting the discounts you deserve on your home insurance policy.
At your service,