Rising Insurance Rates?

[Dixie]

Does anyone know what's driving the surge in property insurance rates? Is it inflation? Perhaps it's the increase in home and used car prices?

At first I thought this was just a Florida phenomena. Now I'm seeing articles indicating this is now happening nationally.

[Alan A]

Cost to replace, material and labor.

[pavulon]

Hurricanes, flooding, fires and sharing the expenses and risk with everyone.

[stevej37]

Here in MI, I have not seen any sizable increase. Car ins rates have been mostly steady also.

[craigster59]

$1,100 a year to almost $6k in one fell swoop. They blamed it on "high wildfire risk" but they are even penalizing those that live in the suburbs.

Like Alan A posted, they are now blaming it on replacement/rebuilding costs. Not many companies writing fire policies in California.

[LWJ]

I'm in the industry. This is what we call a "hard market." Claims costs + admin costs are outpacing premiums + investment income. The result is rate increases. Property rates are really going nuts.

[VINMAN]

Prudential raised rates by close to double across the board last year. Home ,auto..

Dropped them after close to 30 yrs.

.

[stevej37]

State Farm sent everyone (in MI) a $700 check for every car policy they had.
I had four, but they only paid for two because those two had min coverage just to plate them.

[john70t]

Got a letter saying the commercial ins company is 'merging' with the Michigan Insurance Commission, or something to that effect. I think that is code-speak for "We are broke and the government is taking over". A joint venture which the board approved of. Considering they are one of the very few for small rental businesses there aren't many options out there.

[jcommin]

Can't speak to home insurance but I reviewed my policies for auto, liability and renters insurance last year. I just dropped Met Life/Farmers after 12 years and went to State Farm. My car insurance dropped 40%, renters was flat, and liability went up slightly for the same coverage. Overall savings is $100/month.

I have heard horror stories of people owning Hyundais or Kias. It's a good idea to review cable, phone and insurance plans every couple of years.

[hcoles]

Originally Posted by Alan A

Cost to replace, material and labor.

I think it is this ^. Construction costs in my area are totally out of control. ~Double that if you want a high-end contractor with his subs that know what they are doing. IMO the high quality subs are busy servicing the high-end contractors - the average person can't easily find them and get them to do a job.

[Nordwest]

My auto insurance went up 15%. No tickets or accidents. I called Travelers and they said that was an across the board increase for Washington State. Damn it!

[GothingNC]

Insurance companies in the state, through the North Carolina Rate Bureau (NCRB), have formally requested a significant hike in homeowners' insurance premiums. The proposed increase of 42.2%, announced by Insurance Commissioner Mike Causey, could take effect as early as Aug. 1.

[exc911ence]

Greed? Has anyone answered greed yet?

[Dan J]

My business ins doubled last year and I had a hard time getting that
No claims of any kind in past 10 yrs

[rwest]

Around here, whenever we get a hail storm, roofs and siding get replaced like crazy all on the insurance companies “dime”. So in other words, all of us pay more so someone else can get a new roof that in reality probably had very minor damage and would have lasted for decades longer before it failed- drives me crazy.

[Por_sha911]

Originally Posted by exc911ence

Greed? Has anyone answered greed yet?

Here is your answer of greed:

Originally Posted by rwest

Around here, whenever we get a hail storm, roofs and siding get replaced like crazy all on the insurance companies “dime”. So in other words, all of us pay more so someone else can get a new roof that in reality probably had very minor damage and would have lasted for decades longer before it failed- drives me crazy.

[Arizona_928]

Think that's bad. Rent rates are increasing exponentially.

My scheisse box apartment where I fight "Pickle Rick" rats has increased 20% each year. I have friends that went from $550-$750-$875 the last few years.

[GH85Carrera]

Originally Posted by pavulon

Hurricanes, flooding, fires and sharing the expenses and risk with everyone.

This. The hurricane damage in Florida and the east coats has been BILLIONS of dollars in city after city. The fires in California, and other areas have been more billions. Insurance companies are in business to make money, not to pay claims.

[Targa68]

https://r.search.yahoo.com/_ylt=AwrihRUhE5xlsFg.mxdXNyoA;_ylu=Y29sbwNiZjEEcG9 zAzIEdnRpZAMEc2VjA3Ny/RV=2/RE=1704756130/RO=10/RU=https%3a%2f%2fwww.theguardian.com%2fus-news%2f2023%2fmay%2f03%2fron-desantis-insurance-industry-donors-florida-governor/RK=2/RS=qnE1HWDCLA3n4IX6Te_ZbYKe_bo-