Following a year of record breaking disasters, many homeowners are wondering how they can find lower and more affordable rates for their insurance policies. Even those with experience in shopping around for the best price for a policy are discovering that the process is becoming much more complex. Many insurance companies have now implemented a number of different types of exemptions for various forms of damage from storms and other natural events. Some are also assigning lower values to a home’s replacement cost. According to the Consumer Federation of America’s…
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Nationwide average for homeowners’ insurance premiums increased in all but two states
According to the most recent HomeInsurance.com RateReport, which shows the average premiums across all of the states in the country over a 12 month period (as of September), all but two states experienced an increase in homeowners’ insurance premiums. The two states that saw a decrease in premiums were Washington D.C. and Vermont. All of the other states in the country saw their average homeowners’ premiums increase from 0.1 percent to 5.8 percent more than what policyholders had been paying during the year beforehand. The average premiums that were used…
Read MoreAllstate to drop homeowners if they do not get their auto insurance from the company
In an effort to rein in on risk in North Carolina, Allstate has begun dropping homeowner’s policies for those that refuse to also purchase their auto insurance from the company. The 45,000 homeowners Allstate currently provides coverage for in the state have been informed that they must switch their auto insurance policies over to Allstate by December 15 of this year or risk losing their home insurance policies entirely. The company cites risk management as the driving force behind the initiative. Those that lose their coverage from Allstate are not…
Read MoreAon Benfield report shows property insurance rates do not account for risk in some areas
Aon Benfield, a global reinsurance intermediary for the Aon Corporation, has released a new report concerning the state of home insurance rates in the U.S. The report shows that potential profit in the home insurance market has dropped from 6.9% in 2010 to 4.8% this year. The report suggests that the drop may be due to property insurer’s not pricing homeowner’s insurance in accordance with risk. This is especially prevalent along coastal regions where the risk for catastrophic damage is highest. Aon Benfield’s report shows that property insurers have shown…
Read MoreHomeowners insurance increases by 6.5 percent over 2010
Homeownersinsurance.com data has revealed that the average home insurance rate in May 2011 in California was approximately $770. When compared to the same time in 2010, this was an increase of 6.5 percent, as the average premium at that time was $729. HomeownersInsurance.com is a division of HomeInsurance.com LLC, which is marketplace for insurance online and is comprised of a group of more than 125 licensed insurance agents who sell homeowners insurance products across the United States. The CEO of the company, Carlos Lagomarsino, said that the Californian insurance rates…
Read MoreReport calls for more action from consumers to help mitigate the costs of natural disasters
This year has been host to a large number of natural disasters that have born a heavy price tag to the insurance industry. While natural disasters may not be happening more frequently, they are certainly happening in areas of dense population, making the damage they cause astronomical. Consumers often look to the insurance industry to provide protections against natural disasters, but the industry can only do so much. A new report from the University of Pennsylvania’s Wharton School suggests that government policy, as well as consumer initiative, may significantly reduce…
Read MoreHomeowners may see less coverage following changes made by State Farm
State Farm has announced that it will be making changes to the deductibles in its homeowner insurance, and consumer advocates are concerned that this will decrease the amount that will be paid on consumers’ claims. The insurer also released a notice to insurance regulators in Texas, stating its intentions to increase homeowner insurance rates, starting in October, by an average of 9.6 percent. State farm is the largest insurer in the state. It also announced that, starting in December, it would be moving all of its current customers over to…
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