Home market volatility will likely continue as home insurance rates are expected to continue to rise, a report my insurance comparison platform Insurify has revealed.
The 2023 Insuring the American Homeowner Report revealed that home insurance rates in the US will increase an additional 9%, following a 7% increase from the previous year.
Home values in in western states are declining, with an average 31% drop in home sales among major metropolitan areas like Las Vegas, Provo, San Jose, Seattle, and San Diego.
The report also found that among new homeowners who bought in the past year, 27% are already underwater, and 58% worry that they will soon be.
Further, about 89% of homeowners were confident that they had enough home insurance, and close to 98% were at least moderately confident that their insurer would resolve their claim to their satisfaction.
Insurify also found that American homeowners are increasingly concerned over the impact of climate change on their home values. Even homeowners in cities like Boise, Idaho, and Columbus, Ohio, who aren’t often exposed to natural disasters, displayed high levels of concern on the matter.
The report, which features Insurify’s own proprietary data, in addition to data from the U.S. Census Bureau, Federal Emergency Management Agency, and other publicly available sources also highlighted that more severe weather, supply chain delays and higher material and labour costs are the key reasons why home insurance rates are continuing to increase.
Shawn Powers, Insurify’s vice president of insurance sales said, “The cost of individual policies is rising. Homeowners may notice an increase of hundreds of dollars for one year to the next.
“This may induce homeowners to shop around with multiple companies for a policy. While this is a great way to find a better price, homeowners may find their current carrier is not alone in raising rates.”
Earlier this year, Insurify completed its acquisition of Compare.com Insurance Agency.
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