Part of the reason for the increase: we saw adverse weather in 2011 that eclipsed significant weather events of most other years.
We’re hearing from multiple sources – consumers, agents, and insurance companies that homeowner’s insurance rates are increasing. There is a cycle for insurance premium rates, not unlike economic cycles, and premium rates have indeed been rising for several months.
At least a part of the reason for the increase: we saw adverse weather in 2011 that eclipsed significant weather events of most other years. When insurance companies have to pay significant dollars in claims, they tend to increase rates. Let’s hope the relatively uneventful weather of 2012 continues (we realize it doesn’t seem so uneventful to those experiencing wildfires, drought, tornados, and flooding) – the key words here are relatively and on a national level.
Blame global warming, a higher power, or just rotten luck, but the fact is you need to protect your family and assets against significant loss – and your local independent insurance agent is a good place to start.