Homeowners Insurance Costs Up by 2.5% in 2005; Smallest Increase in 6 years

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If the average cost of Homeowner insurance only went up 3.8 in 2004, there must have been some drastic cuts in a lot of other states to offset the 20-30% rate increases we have experienced in Kansas in the last year and similar increases in the prior years. According to our companies, we should not expect much less of an increase in 2005. The 2.5% mentioned in the article is just a dream and it’s time for someone to wake up. Insureds can’t handle any more rate increases of this magnatude.

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The article sights the average countrywide. This seem to be a reasonable estimate.

Premium increases experienced by individuals vary based on many different factors. Some companies are late to recognize that they are underpriced resulting in lagging the market average.

Also, companies have begun implementing rating programs that make those that present a greater risk for future claims to pay their fair share for the risk. The rating structures typically include an individual’s personal loss experience in addition to other factors, ect. insurance credit score. As a result, individual experience will vary based on these factors.

While most would think Kansas would not be exposed to catastrophe losses since it is not coastal nor on a fault line, the wind and hail exposure is considerable. If the company you are insured with has either experienced losses greater than their catastrophe modeling, it is possible they raised rates higher than the national average.

It is unfortunate that you experienced such a high increase. You may want to look at other options. Companies’ rates vary based on their experience and expenses. You could find a better value. Please remember to consider the financial stability and claims handling reputation of the company. Price shouldn’t be the only consideration.