Such as . . . ?
It seems like everything I buy has increased more than the official inflation rate of less than 3%. I just don’t get it.
I’ve been with American Family for 20 years. They want to raise my homeowners $640.00 to $950.00. NOT. I am in WI.
You failed to shop for prices and are supried to find out your rates were rising. Stop the presses..
In the past 2 years our wonderful FEMA decided to change their flood maps to include many more properties. So, naturally they included me. There will never be a flood here in this Southern Kalifornia area and my agent agrees and concurs that the expansion was to help pay for damages where floods happen all of the time. Well, I got a quote for over two thousand dollars for one lousy year. That is around three times my homeowners policy. My mortgage holder requires the flood policy. I finally got it much lower when the bank agreed on a policy at around my balance.
One big reason that premiums for traditional “high-exposure/low-frequency” insurance (life insurance and homeowners insurance, for example) have risen dramatically in recent years is that insurance companies simply can’t find sufficient low-risk investments to build large reserves to cover potential losses. With interest rates remaining at historic lows for several years, these companies have to lower the investment return projections that are used to compute the growth of their reserves over time.
This is why so many people believe the inflation rates are wrong. The following things have grown faster than inflation.
1. college costs
2. health insurance
3. gas / energy
4. home owner’s insurance
5. taxes in many forms, from the phone bill universal service fees to cover Obamacare to property taxes
And all of these areas are going up due to government regulations constricting supply, government subsidies or mandates that add to the cost.
We live in NY and over the last 10 years homeowners has gone from $380 to $820.