New Mexico homeowners can expect to pay more for their insurance coverage
A new study from Insurancequotes.com has shown that those living in New Mexico could expect to be paying more for their homeowners insurance. Summer is coming and that means the beginning of fire and flood season in the state. Fires and floods can cause significant damage to property, as has been seen in the past. These disasters have had an impact on the insurance industry, and those living in risk-prone areas of the state could see their homeowners insurance premiums increase as a result.
Homeowners insurance premiums in New Mexico are growing twice as fast as the national average
The study found that homeowners that have made a claim have seen their insurance premiums rise by an average of 19%. Rates for homeowners in the state are growing two times faster than the national average, which is placing these consumers under heavier financial strain. Insurers often raise rates in the wake of natural disasters in order to recover from the losses they saw from such disasters. The study shows, however, that insurers in New Mexico may be raising rates preemptively.
Study highlights the steps insurers are taking to recover from potential losses
According to the study, insurers are expecting their policyholders to file claims in the coming months due to the potential for natural disasters. Because many people are living in risk-prone areas of the state, these consumers are more likely to file claims than others. As such, insurers are taking steps to cover their losses before disasters strike. Doing so may help the insurance industry handle the risks that it faces in the state, especially during seasons where natural disasters are considered more common.
Homeowners insurance premiums continue to rise throughout the US
Homeowners insurance coverage has been growing more expensive throughout the country, but rates are rising faster for those that live where risks are most prominent. Flooding, fires, powerful storms, and other such disasters are contributing to increased rates, but past disasters appear to have the most influence over how much premiums will rise in the future.