Home Insurance Premiums on the Rise
Homes are needing a little extra protection these days – and more protection, means higher premiums.
According to The Washington Post, since 2017, premium rates are up 11.4%, which is faster than inflation. Premiums have been up, on average, by 4%.
Insurance companies aren’t expecting the rises to stop anytime soon, either. Material costs and climate change seem to be the main triggers.
Dan Porfilio explains in The Washington Post’s’ article, “Climate risk is continuing to put pressure on all things weather-related. We are seeing more severe hurricanes, more severe wildfires, and the science isn’t as clear on tornado events in terms of whether they’re changing in frequency or not. But what we definitely do know is that severity is going up.”
After a natural disaster occurs and destroys homes, building material unfortunately elevates in price for about six to nine months.
Wondering what the average spending is on home insurance? According to Bankrate.com, homeowners spend nearly 2% of their household income on home insurance.
For more real estate news, stop by Pacific Alliance Title’s Blog.