Insurance
Questions/Tips Insurance

Home Insurance Costs on the Rise, Coverage Options Decrease

(5/2/2012) Home insurance rates are at a record high, and are expected to jump even higher in 2012, reported the Insurance Information Institute in March.

Homeowner insurance premiums are expected to raise 5% this year to an average of $1,004, the biggest yearly increase since the housing market collapse. The increase also marks the first time the national average premium is above $1,000.

The rising rates are one more challenge for American homeowners, many of whom face properties that are underwater and mortgage payments that are out of reach. Insurance companies cite these challenges as a primary reason for escalating premiums.

The Insurance Information Institute also reported that insured catastrophe losses in the U.S. totaled $35.9 billion in 2011, up from an average of $23.8 billion from 2000 to 2010. At the same time, insurers' return on investments have been at record lows, providing one more reason to increase prices to consumers.

While homeowners have always had the option to seek out different coverage and different rates when facing rising costs, that is becomingly increasingly hard to do. Across the board insurers are increasing premiums, and some companies are exiting the market all together. At the same time, the coverage offered by insurers is becoming increasingly limited, with companies charging additional fees for coverage that may have been standard in the past.

Overall, states are in charge of allowing insurance companies to raise their rates. That means premiums can vary widely from state to state, and each may have their own record amount of premium increase. Key states that are poised to post record-breaking rates are:

  • Georgia - Rates from GuideOne insurance are jumping 12% on average
  • Texas - Rates from Farmers Insurance are increasing 10% on average
  • Pennsylvania - Allstate is raising rates by 15%
  • Florida - Citizens Property Insurance Corp is increasing rates by 21%

The unfortunate side effect of increasing rates and decreasing insurance options is consumers make a big gamble with their home insurance. Many will raise their deductibles to get relief with monthly costs. But if damage or theft does occur, that means higher out-of-pocket costs. That can be an even bigger strain on strapped homeowners.




Refinance at Today's Low Rates!

 

Fannie Mae & Jumbo Mortgage Rates

Just One Click! = Current Rate Chart

Pennsylvania Mortgage Rates Current Mortgage Rates - Hawaii Current Mortgage Rates - Alaska West Virginia Mortgage Rates Virginia Mortgage Rates District of Columbia Mortgage Rates Maryland Mortgage Rates Delaware Mortgage Rates New Jersey Mortgage Rates Connecticut Mortgage Rates Rhode Island Mortgage Rates Massachusetts Mortgage Rates New Hampshire Mortgage Rates Vermont Mortgage Rates New Hampshire Mortgage Rates Maine Current Mortgage Rates Vermont Mortgage Rates Current Mortgage Rates - New York Current Mortgage Rates - Michigan Current Interest Rates - Wisconsin Current Mortgage Rates - MINNESOTA Ohio Mortgage Rates Current Mortgage Rates - Kentucky Current Mortgage Rates - Indiana Illinois - Current Mortgage Rates Current Mortgage Rates - Iowa Missouri Mortgage Rates Current Mortgage Rates - North Carolina South Carolina Mortgage Rates Current Mortgage Rates - Florida Current Mortgage Rates - Georgia Current Mortgage Rates - Tennessee Current Mortgage Rates - Alabama Current Mortgage Rates - Mississippi Current Mortgage Rates - Louisiana Current Mortgage Rates - Arkansas Current Mortgage Rates - Oklahoma Current Mortgage Rates - TEXAS Current Mortgage Rates - New Mexico Current Mortgage Rates - Arizona Current Mortgage Rates - Kansas Current Mortgage Rates - Nebraska Current Mortgage Rates - Colorado Current Mortgage Rates - Wyoming South Dakota Mortgage Rates Current Mortgage Rates - North Dakota Current Rates - Montana Idaho Current Rates Washington Mortgage Rates Current Mortgage Rates - Oregon Current Mortgage Rates - Utah Current Mortgage Rates - Nevada Current Mortgage Rates - California

Start by selecting your state

Other Related Articles:

What Home Owners Insurance Do You Need? Tips for the Best Coverage

Home Insurance Quotes: Types of Home Owners Insurance

Get a CLUE about your home and auto insurance claims

Don't add on 'add-on' insurance

Homeowners insurance goes to school

Costly trends impacting homeowners insurance

Insurance - Homeowners Insurance Advice

Always time for a home inspection

 



Auto Insurance

General Insurance Articles

Homeowners Insurance

Medical Insurance

Life Insurance