nhcinsurance.com - California Homeowners Insurance in 2024:
|------- ... home insurance in California is becoming increasingly unaffordable, leaving many residents anxious about their coverage.
... Insurers are now increasingly hesitant to underwrite standalone homeowners' policies, urging homeowners to bundle their coverage with supporting business policies to access preferred markets.
Skyrocketing Homeowners Insurance Costs
... Many Californians are finding that specialized home insurance coverage in California ... is either unaffordable or inaccessible... The departure of major insurers from California has significant implications for homeowners.
The California homeowners insurance market is plagued by nonrenewals and premium increases related to wildfires and regulations. - Nov 14, 2023
After receiving approval from state regulators, State Farm home insurance will increase by an average of 20 percent in 2024 - Jan. 3, 2024
www.policygenius.com - Why did your homeowners insurance go up? - February 9, 2024
|------- But in 2023, homeowners in every part of the country saw their insurance rates go up by hundreds, even thousands of dollars in certain states. In fact, home insurance premiums were up an average of 21%, according to a Policygenius analysis of policy renewals from May 2022 to May 2023. ...
... Wildfires out West, hurricanes in the South, and flooding in inland parts of the country have all contributed to home insurance companies pulling out of many states and raising premiums to counteract the outsized risk of homeowners filing claims.
We've already seen national insurers including State Farm, Allstate, Nationwide, and Farmers either pull out of states completely or reduce their exposure in high-risk areas.
Ellen Carney, principal analyst at Forrester, predicts this trend to continue. "Expect another dozen insurers to follow the likes of AIG, Allstate, and others and scale back their business in California, Florida, Louisiana, and now North Carolina...
But the fact of the matter is home insurance premiums are going up everywhere due to the increased cost of labor and construction materials thanks to supply chain issues and high inflation that started in 2020.
Your rates are based heavily on how much dwelling coverage is in your policy - this is the part of your home insurance that pays to rebuild your home if it's damaged or destroyed. Higher rebuild costs due to inflation means homes are requiring higher dwelling coverage limits to keep up with the rising prices.
This has led to higher home insurance rates across the board...
... labor shortage in the construction industry continues to remain a problem... There were 431,000 construction job openings as of September 2023 - nearly three times the number expected by the U.S. Bureau of Labor Statistics.
5 factors behind rising home insurance premiums:
1. Coverage changes due to rising construction costs & inflation
2. More extreme natural disasters
3. Your home's risk changed
4. Your claims history
5. Liability risks
I don't see politics or particular politicians (as dumb or incompetent as they may be) as the factor in these particular insurance increases or affordability. Pretty much it's "location, location, and location."