Property insurance rates keep climbing, worsening affordability crisis
Barrons Roundtable panel provides insight on the increased pressure on consumers.
Home and auto insurance rates have surged in the U.S. in recent years to the point that many Americans are having trouble paying the premiums – and the price hikes are set to get worse.
Record losses from natural disasters, inflation, regulatory and reinsurance issues are all contributing to insurers moving to raise rates, in what has been a brewing crisis for consumers.
Home insurers are raising rates in the states where they can and fleeing others, putting the squeeze on some homeowners and leaving others struggling to find coverage.
Homes destroyed by Hurricane Nicole on November 10, 2022 in Daytona Beach, Florida. Property damage from natural disasters is contributing to soaring insurance rates. ((Photo by Joe Raedle/Getty Images) / Getty Images)
A survey from Assurance IQ last fall found 63% of Americans with insurance saw their home or renters insurance rise within the past year, and 67% were hit with a rate increase on their car insurance. More than half (51%) of those surveyed said they are cutting back on spending in other areas to make room in their budgets for the added costs.
NEARLY 70% OF AMERICANS ARE REVIEWING THEIR INSURANCE POLICY, LOOKING FOR LOWER RATES: TRUSTED CHOICE
Loretta L. Worters, spokesperson of the New York-based Insurance Information Institute, recently told FOX Business that homeowners' insurance premium rates have risen significantly due to the pandemic and the state of the U.S. economy.
«Much of the increase can be attributed to supply chain issues and labor shortages driving up the cost of home repairs and replacement costs, but also rising catastrophe losses related to extreme weather and population
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