Homeowners & Insurance — A Disturbing Survey

Nationwide the average annual price for homeowners insurance is $1,997 a year.

ClaimGuide.org did a survey of 1,500 homeowners around the country. As most of you know, in the last five years, the price of homeowners insurance has risen an average of 34%, and 61% of those surveyed said they’ve seen higher rates in the last 12 months. Those saying their premiums have doubled to more than doubled is 10%.

Due to the growing premiums, the website found 23% are cutting back on fun things like dining out and travel. They’re looking more carefully at grocery purchases and medication to help pay for their spiking homeowners premiums.

One in 10 are thinking about relocating to an area with lower homeowners insurance premiums. Another 10% are increasing their deductible to get drop in payments. A more frightening scenario is the 20% who say if their mortgage lender didn’t require insurance on the home, they’d drop that insurance.

A huge number are homeowners insurance shopping but 73% say those options are too limited with 27% saying they can’t find an affordable provider. Even at that, 20% say no matter what, they’re changing insurers next renewal.

The bottom line, with many homeowners wondering if their insurer is going to drop them in the next year, 62% say the insurance industry is in a crisis. Their view as to why is interesting, and disconcerting.

• 40% say insurance company greed is responsible for the rising costs
• 86% say insurance companies are using inflation as an excuse to raise premiums
• 73% say the insurance industry needs more vigorous regulations

All that said, 66% acknowledge climate change and more severe weather events are contributing to the high cost of homeowners insurance.

Today, over 10.6 million homeowners do not have their homes and property insured. That’s about 7.4% of the nation’s homeowners. Among the states with the most uninsured is the PIA Western Alliance state of New Mexico which sits in second place in the top-5 states with the most uninsured.

Mississippi tops the list.

Coastal states are likely to have the most insured homeowners. Washington D.C. has the highest rate of insureds with only 3.3% uninsured.

The PIA Western Alliance states along with West Coast with the most uninsured are California at 4.9% and Oregon with 4.7% uninsured.

Gerard Reczek is an insurance specialist with ClaimGuide.org. He’s urging homeowners to not cut back on expenses but, instead, do some home improvements that will — in the long run — lower homeowners insurance premiums.          

“Roof updates to meet new wind guidelines for coastal properties and other high wind areas affords homeowners additional protection and can reduce insurance cost,” Reczek said. “Insurance companies will lower premiums and reduce wind deductibles with recommended roof construction improvements.”

And then — like most agents’ advice — review your insurance policy every year.

“Understanding potential hazards and exposures to your area and home allows you to address any concerns in advance,” Reczek added. “Reading policy exclusions for flood, wind, and earthquake will direct you to policy limitations you should address. Taking ownership in policy coverage and policy exclusions should prevent any surprises after a loss.”

Source link: Insurance Journal — https://bit.ly/3WQlmn4