Across the country many homeowners are discovering their homeowners’ insurance policies are becoming more expensive. While some have found their premium rates rising by a few percentage points, some in Texas, North Carolina, Colorado, and Washington State are seeking increases as high as 30 percent.
Insurance Experts Claim Increases Due to Two Major Issues:
- An increase in severe weather.
- Changes to federally-subsidized flood policies.
First, insurance companies in states like Texas, Florida, Colorado, and North Carolina have asked the state government to approve significant insurance hikes so that they can continue to profit from homeowners’ insurance policies. Currently, the insurance companies claim that they are paying more out in claims than they are collecting from policyholders because of the severe weather.
Indeed, states like Texas and Colorado have seen many more incidents of hail, tornados, and severe wind in the past five years – storms that cause millions of dollars in damage to private property.
Colorado residents could see an increase of up to 30 percent in their homeowners insurance rate. North Carolina residents—especially those along the coast—could see a 25 percent increase. Texas homeowners may see a 15 percent increase in their insurance rates.
Another issue that may raise rates in coastal communities is changes to federal flood insurance policies. Some changes went into effect in October 2013, with more changes to follow on the horizon. Property owners in coastal areas such as Florida, Louisiana, and Washington State are seeing flood insurance increases as high as 50 percent. These rates may increase even further depending on the pattern of future flood events.
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