2023-09-15 17:11:45
The 2023 Home Insurance Price Report from Policygenius, the platform where consumers can compare options from top insurers, shows that as the United States faces an increase in extreme weather and natural disasters, Home insurance prices continue to skyrocket.
“From May 2022 to May 2023, Home insurance policy premiums increased by an average of 21%substantially more than the reported increase of 12% compared to the previous year (May 2021 to May 2022),” the report says.
The analysis is based on internal data from Policygenius, after comparing more than 17,000 policies that were renewed between May 2022 and May 2023. It was also found that in all states analyzed for this report, The average increase in premiums was greater than the previous year.
“The strong increases in recent years occur amidst record losses in the insurance industry, more serious climate disastersprolonged wildfire seasons and higher construction prices,” quotes Policygenius.
The Report also found that:
· The vast majority of American homeowners faced higher insurance premiums at the time of renovation. Of the more than 17,000 home insurance policies listed for renewal with Policygenius between May 2022 and May 2023, 94% were quoted a higher premium at renewal timecompared to 91% of 10,283 renewals from May 2021 to May 2022.
· Home insurance prices have increased by 35% compared to just two years ago, and several wildfire- and tornado-prone states saw the largest average increases. Based on an analysis of 27,156 home insurance policy renewals between May 2021 and May 2023, it was found that insurance premiums increased by an average of 68% in Florida, 47% in New Mexico and 46% in Colorado, Idaho and Texas over the course of two years.
· East Coast states saw smallest increases in renewal in 2023. While homeowners in these states have not experienced the same level of sticker shock as others, home insurance premiums still increased by 10% in Vermont, 11% in New York, 13% in Maine, and 14% in New Hampshire since last year, according to Policygenius analysis.
“Given the industry’s current challenges and the threat of climate change, It’s no surprise that home insurance premiums continue to rise“said Pat Howard, licensed property and casualty insurance expert at Policygenius. “For homeowners with rising costs, it’s important to know that there are multiple ways to reduce your premium, such as repurchasing your home insurance through an independent marketplace to ensure you don’t miss out on a more affordable option.”
For more details of the analysis and its methodology, enter here.
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