USAA and Farmers homeowners insurance rates spike by almost 15 percent

Homeowners insurance - Rates rising

A new S&P Global Market Intelligence report showed that the insurers were charging much higher premiums.

The United States Automobile Association (USAA) and Farmers Insurance Group have raised their homeowners insurance rates by an average of almost 15 percent in 2023, according to a recent report.

That increase is notably higher than all other major insurers in the United States.

According to the October 3 S&P Global Market Intelligence report, the average increase in homeowners insurance rates across the country up to August was 8.8 percent. That said, through to September 1, the home policies for owner-occupied properties covered by USAA and Farmers showed a notably higher year-to-date increase in effective rates, said the S&P report. The USAA’s average increase was 14.7 percent, which was only just exceeded by Farmers, which increased its rates by 14.8 percent.

Homeowners insurance - Expenses - Worry - Stress

Home policies have been getting more expensive across the country, particularly in certain states that have faced a growing risk of catastrophic natural events such as hurricanes and wildfires. In those states, many insurers have withdrawn or have ceased selling and renewing policies, making coverage considerably more costly for property owners.

Florida and California have been particularly affected by these homeowners insurance trends.

For instance, Farmers and AAA both stepped out of home and auto coverage in Florida. In California, State Farm stopped selling business and personal property products.

The S&P report indicated that Farmers increased its property rates across 43 states. Of those, about 65 percent experienced a change of at least 10 percent. That included an average 23.8 percent increase in Tennessee, a 25.1 percent increase in Texas, and a 25.3 percent increase in Illinois.

USAA, on the other hand, increased its property rates in 44 states. Of those, about 60 percent saw increases at 10 percent or higher, according to S&P’s data. This included an average 30.1 increase in Tennessee, 34.7 percent in Colorado, and 36.6 percent in Arizona.

That said, the largest average homeowners insurance rate increase so far this year in any state was set by Progressive, which increased rates in North Carolina by an average of 57 percent, said the report. That increase went into effect on June 19 for the renewal business at the insurer.

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