Wildfires in California. Hailstorms in the Midwest. Hurricane Ian in Florida & South Carolina. It’s a crazy year for home owners insurance.
On top of that add in the crazy inflation in the home construction market. After two white-hot years, only now are home prices starting to slow down from higher interest rates.
We just got our 2022-2023 premium statement from State Farm. We received it even before we’ve had to pay our roofer for the $65K job they did following our May hail storm. The bad news was that it is up double-digits, the good news is that it is just barely double-digit inflation.
Our new premium rate is $3.4K/year – up 10.2% versus last year.
That’s a big increase for sure, but not nearly what it could have been. Last year, homeowners insurance went up only 2% nationally, according to a report from Quote Wizard, but there is a lot of volatility state-by-state, depending on catastrophic events.
Last year Idaho was up 34% while Kentucky declined -25%. Our state, Minnesota, was pretty flat last year, but I expected we’d be through the roof going forward. I’m thankful that is not the case.
How is your homeowner’s insurance premium tracking for the upcoming year?
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