Sales prices were not the only skyrocketing home-related costs
The average price of
The analysis shows that inflation and the rising price of homes are the two main factors for increasing premiums in
The median sales price for
“Simply put, the more expensive your home, the more expensive your home insurance,” the analysis report states.
And with inflation, it now costs
“Add to that the increased cost of replacing the items in your home and your existing policy may no longer fully cover the cost of rebuilding your home after a total loss,” the report notes. “Many homeowners may now need to recalculate the amount of coverage they have for their home.”
Climate change and the rise in natural disasters have also had an impact on recent homeowner insurance premiums, given that most policies do not cover specific types of disasters, the report states.
There has been an 83% increase in billion dollar floods over the last 20 years but floods, earthquakes and mudslides are not covered by homeowners insurance. They’re instead covered under specific policies, the report states.
Key findings in the analysis for
These five states had the biggest increases in home insurance premiums since 2021.
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