Posted on 02/23/2024 12:32:33 PM PST by ChicagoConservative27
The astronomic rise in mortgage rates and spike in home prices over the past year has pushed a key tenet of the American dream out of reach for millions of families.
Now, there is another obstacle to homeownership: higher home insurance premiums.
The average cost of home insurance for a $300,000 property in the U.S. surged 12% in 2023 to roughly $1,770 per year, according to a new report published by Insurify, an insurance comparison website headquartered in Massachusetts.
However, home insurance is even more expensive in states plagued by severe weather and other climate-related catastrophes. In fact, as the frequency and severity of destructive weather events have increased, more areas are considered high risk and unprofitable for insurance companies, the report said.
(Excerpt) Read more at foxbusiness.com ...
Good points—especially for FL and CA which have been hard hit.
Our insurance is reasonable but the quoted replacement cost for the home is ridiculous—more than three times what we paid for it twenty years ago—and it was not new then.
If the rates start jumping I will definitely be looking at lowering that replacement cost—if the replacement is a slight downgrade no big deal.
Nationwide has been forcing customers to powerwash and/or replace their roofs.
They fly a drone to photodocument any discoloration.
It’s bad, though.
The California insurance companies are probably planning for house conflagrations caused by Tesla cars in the garage. Every other car in the Bay Area is now a Tesla.
Hurricane hit SW Florida....
That’s like everyone having a car wreck x10 on the same day.
Legislature is helping fix it....
I dropped my house insurance. I’ll take my chances.
Checking out condos along the NC coast (on Zillow)...HOA dues are out the roof. I’ve seen them as high as $16,000 annually. I’m guessing much of that is the building insurance.
We’re in a friend’s1000sf condo at Ocean Isle NC this weekend. The unit is 3rd/4th row back. HOA dues are $6500/yr. That doesn’t even include interior insurance and local property taxes. Luckily, the unit was paid off a long time ago.
maybe you live close to PGE power lines
I have an add blocker and that will not be allowed by FB
It’s up everywhere, because everything is more expensive including labor. Some costs may come down if housing market slows a bit more and cost of supplies and labor has less demand.
I’m not generally a fan of regulation but some things we as a people might be better off with collective bargaining. I hear in Florida that the state fund is now the primary insurer because not many independent insurers want to do business in the state. The risk is high as one bad hurricane could hit them with ten billion in damages at a time. So, why not have a Florida only insurance company? All Floridians contribute and “force” by collective bargaining a maximum profit they can make - keep administration costs down. Maybe even make it a charity, so there is no profit. They have to keep large reserves yes, but they don’t have shareholders to pay out. They just need adjusters and actuaries. Just a thought. Needs flushing out. Or heck Freepers can reject it out of hand.
Don’t some states do this with auto insurance? Or at least it was proposed. Put a tax on gasoline and that’s the insurance premium. No fault insurance. No major payouts for “pain and suffering” just legitimate lost wages and repair costs. Lawyers won’t like it. And another thing - with Obamacare, most everyone has health insurance. So why do we also need to pay premiums for injury in a car, slip and fall liability, or worker’s comp insurance too? its all healthcare. Why have 5 different types of insurance for health care coverage? If you have health insurance it should cover any injury. That would drive a lot of efficiency and lower costs of insurance and for business liability too.
IF NO FOSSIL FUELS-——NO SHINGLES.
The idea is interesting.
One problem with state run enterprises these days is that they seem unable to invest funds without making corrupt deals with “investment advisors”, “consultants” or “investment fund managers”.
I do not how to solve that problem in an age where crooks are running wild.
An insurance fund would (hopefully) have big bucks in reserves—a very tempting target.
HAVE OWNED 4 houses—some with acreage.
HAVE NEVER SEEN ANY COVERAGE FOR “LAND” ONLY STRUCTURES.
AND LIABILITY
Calif should be on that list,
During the “Supply Chain” crap-—a piece of plywood 4’ X 8’ went from about $7 to over $64 .
NO FOSSIL FUELS===NO SHINGLES.
Yes, our insurance rates are high and going higher, so don’t move from your communist state to Texas.
1700? I wish. Mine is 3200 a year. Florida is becoming so expensive. Car insurance is 2500 a year. Groceries, tolls, electricity, water all up up up.
This is just the insurance industry getting its turn in the barrel. Govt restrictions and onerous codes have run up the cost of construction (like everything else), and recent weather damage figures have shown insurance companies they have been pricing too low. Now it’s catch-up time.
Paging Ron DeSantis.
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