As home market volatility continues to stomp its way through this year, homeowners’ insurance rates will be rising even as the home values themselves drop, said a recent Insurify report called the 2023 Insuring the American Homeowner report.
The price paid for individual policies is continuing to climb and policyholders should expect to pay more.
“The cost of individual policies is rising. Homeowners may notice an increase of hundreds of
dollars for one year to the next,” said Insurify vice president of insurance sales Shawn Powers. “This may induce homeowners to shop around with multiple companies for a policy. While this is a great way to find a better price, homeowners may find their current carrier is not alone in raising rates.”
According to the report, property owners should expect that their rates will rise by an average of 9 percent on the heels of last year’s 7 percent average increase.
In western states, home values and home purchasing have been drooping. In major cities such as Las Vegas, Seattle, San Jose, San Diego and Provo, there has been an average 31 percent drop in home sales.
Expenses for property owners keep rising as homeowners’ insurance rates are still climbing.
Among home buyers who purchased their properties within the last twelve months, 27 percent have already reached the point that they can’t afford their bills and another 58 percent say that they’re worried they’ll soon be underwater, said the report.
The Insurify report also stated that property owners across the United States are increasingly worried about the impact of climate change on the value of their houses. Cities such as Columbus, Ohio and Boise, Idaho aren’t typically exposed to natural disasters, but even homeowners residing there have expressed concern about what climate change will do to their home values.
The participants surveyed for the report identified their top stressors as losing their property values and making their mortgage payments. That said, as belts keep being tightened, other rising expenses such as homeowners’ insurance rates are certain to only add to those pressures.
