Home insurance costs surged by 19% in 2023, marking a 55% increase since 2019.
That is according to Guaranteed Rate Insurance LLC, which released a report warning of continuing trends such as rising premiums, higher deductibles, insurance carrier restrictions, and the need for additional coverages like private flood insurance due to increased risk exposures.
By comparing internal policyholder premium data from 2022 and 2023, the report found that the national average premium increased by $273 per policy, or 18.85%.
Additionally, it revealed that the average premium jumped 55.47% from 2019 to 2023, with significant increases seen in 2021, 2022, and 2023.
The average premium in 2021 sat at $1,276, according to the report. In 2022, this increased to $1,450, then went up again to $1,723 in 2023.
To mitigate the impact of rising premiums, Guaranteed Rate offered several strategies to help homeowners combat the sting of increasing insurance costs.
Recommendations outlined in its report included: shopping around for better rates, opting for higher deductibles, bundling home and auto insurance, ensuring adequate coverage limits, assessing the condition of one’s roof, utilizing smart technology to reduce risk, considering the purchase of private flood insurance, taking proactive measures to protect property, monitoring credit ratings, and estimating insurance costs before buying a new home.
Jeff Wingate, executive vice president and head of insurance at Guaranteed Rate, highlighted the importance of the study in their work to help clients find proper coverage.
“These real-time insights allow us to work with our clients proactively, as we have a comprehensive understanding of market trends and an array of strategies available to lower costs, reduce risk and ensure our clients have proper coverage,” he said.
What are your thoughts on this story? Feel free to share your comments below.
