The cost of homeowners insurance increased
36 percent from 2003 to 2010 – almost double the rate of inflation. The first
reason is there are rising insurance premiums, because of severe weather
conditions. Hurricanes and other weather catastrophes led to 39 percent of
nationwide homeowners insurance claims payments from 2004 to 2011, compared to
25 percent from 1997 to 2003.
The second reason is that insurers may have
sold policies too cheaply over the years in trying to lure customers to their
more profitable auto and life insurance policies. On the other hand some critics
say that insurers are inflating the insured value of homes by saying that it
would cost more to rebuild. Home owners need to review their policies very
carefully; ask question and shop around to various carriers before paying your
premium or renewal premium.
I hope this information is useful.
Should you need assistance with any of your real estate
needs, please contact
Have a Supreme Day!
Sheila M. Wilkinson-Sanders
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