Summary
Insurance costs have been soaring due to high inflation, insurers’ greater exposure to disasters like hurricanes and wildfires, and rising reinsurance costs. Home insurance premiums rose about 30% from 2019 to 2023, while rebuilding and replacement costs went up 55% during the same period.
A recent Fannie Mae survey shows that nearly half of respondents expressed concern about the impact of extreme weather events on their homes. About two in three insured homeowners said weather-related events have had an impact on their home insurance premiums. Some insurance companies are pulling back on homeowners’ policies in vulnerable areas across the country.
Montoya’s advice to anyone car-shopping is to get a quote from your insurer. The Kiplinger Letter is a collection of concise forecasts on business and economic trends. This forecast first appeared in The Ki Plinger Letter, which has been running since 1923.
