S&P Global Market Intelligence — Worries about Homeowners Rates

We all know homeowners rates are rising. Many of us are facing double-digit hikes. S&P Global Market Intelligence (S&P GMI) just released a report saying, to the surprise of most of us, that Midwest states are seeing the biggest increases.

Of the 10 insurers instituting the highest increases, American Family Insurance tops the list.

The average effective rate increase for 2024 was 10.4%. That’s down from the 12.7% in 2023. While being down sounds good, S&P GMI says that’s an almost 24% average when looking at the last two years.

S&P GMI says 33 states saw double-digit hikes with the PIA Western Alliance states of Montana and Washington seeing rates going up over 20%. Iowa, Minnesota and Utah also saw 20% average rate increases.

Nebraska had the highest rate increases in 2024 and averaged 22.7%.

The S&P GMI report also noted that the top 10 insurers increased their homeowners insurance costs by 45% over the six years between 2019 and 2024. Here are the averages for 2024: 

American Family Insurance — 16.5%

Liberty Mutual — 14.5%

Progressive — 13.5%

Farmers Insurance — 11.8%

State Farm — 10.5%

Nationwide — 10.2%

Travelers — 8.5%

Chubb — 5.4%

USAA — 3.1%

Overall average — 10.2%

Source link: Insurance Journal — https://bit.ly/4aJyM9K