Updated almost 2 years ago on . Most recent reply
Insurance doubling from 2022?
Hi, is anyone else's insurance doubling from 2022 rates. This is happening on all my properties as I go to renew. What's happening in the insurance industry to cause this?
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#2 Insurance Contributor
- Insurance Agent
- Nationwide
@Matt Eklund Increased cost of construction could be viewed as the main cause for all of the rate increases. Example - A kitchen fire in 2020 may have cost $50k, while that same fire in 2023 costs $100k-$150k. I have heard this from several of the insurance carrier executives.
This increased cost forces the carriers to take large increase or exit the market. Problem is, when you have more insurance carriers exiting the market, that creates less capacity, hence another force pushing premiums up.
Industry reports are showing 2024 Property premiums to continue to rise, but at a lesser % rate than 2023.