Wildfires drive sharp increases in US homeowners pricing: MarketScout
Across the US, the average rate increase in the third quarter of 2021 for personal lines was 6.6 percent as compared to up 4.75 percent in the second quarter, according to MarketScout.
The average homeowners rate increase is 4 percent for homes under $1,000,000 in coverage A value and 7 percent for homes over $1,000,000. For some catastrophe-exposed properties, premiums were up by more than 25% in some areas.
“We always expect more aggressive homeowners pricing in the third quarter of any given year as insurers begin to incur losses from wind and wildfire claims,” said Richard Kerr, CEO of MarketScout.
Kerr added: “The national average rate increases for homeowners are not horrific; however, for those with homes in California and Florida rates can be up as much as 25 percent. California homes $20 million and above with high wildfire exposures may not even be able to secure full coverage. Rate increases of 40% are not unusual.”
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
Already registered?
Login to your account
If you don't have a login or your access has expired, you will need to purchase a subscription to gain access to this article, including all our online content.
For more information on individual annual subscriptions for full paid access and corporate subscription options please contact us.
To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.
For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk
Editor's picks
Editor's picks
More articles
Copyright © intelligentinsurer.com 2024 | Headless Content Management with Blaze