We all hear about inflation, and the cost of everything going up.
Natural catastrophes are causing more damage each year
Good help is hard to come by in every industry.
Homeowners are seeing the impact.
The cost of materials, labor, delays in supply, and other market factors drive up the cost to rebuild a home. This directly impacts the coverage amount on the homeowner’s insurance policy, the amount available to rebuild the structure.
Add the increases in litigation, cost of operations for insurance companies, legislative changes, and more, the carriers are in need of increasing the basic rate of insurance to maintain the financial strength to pay claims.
Combining these two different increases, homeowners and property owners in general, are seeing significantly higher renewal premiums.
The trifecta…
The additional threat to the consumer is more specific to those who escrow the premium.
Escrow accounts forecast the payment based on the expiring premium. So when that renewal increase is received and payment made by escrow, the account will end up running a negative balance.
Now, the mortgage company has to collect the escrow deficit in addition to the increase, in many cases this will significantly increase the monthly mortgage payment, further pinching the finances of the average homeowner.
The market is changing regularly.
Premiums, coverages, even availability.
It will be important to stay informed and review coverage with your agent.
#homeownersinsurance #inflation #education #paradoxinsures #property #insurance
