California Homeowner’s Insurance….How Does Yours Compare?
California Homeowner’s Insurance Premiums Are Increasing
Nationally, homeowner’s insurance premiums are increasing. There are a number of reasons for the increases including; fewer new homes (limiting growth), recent losses from natural disasters (especially hurricanes and earthquakes), and the cost to repair or replace (more expensive materials that have impacted premiums).
The National Association of Insurance Commissioners (NAIC) released its Homeowner’s Insurance Report on Jan. 20th, providing detailed data of homeowner’s insurance across the U.S.
Here are some of the findings
In 2013, homeowner’s owner-occupied policy exposures accounted for 76.8% of overall exposures countrywide.
Tenant and condominium policy exposures accounted for 21.3% of the total, while dwelling fire exposure made up the remaining 1.9%.
Approximately 53.2% of policies sold (in large metro areas) in 2013 were tenant or condo/co-op policies, reflecting the high level of urbanization.
These were identified as things that impact homeowner’s premiums the most:
- Construction – The type of residence, the availability of building materials, local climate, and building regulations all affect construction costs
- Degree of exposure to catastrophic losses like flood, earthquake, wind, ice and snow storms.
- Building codes – After major catastrophes like Hurricane Katrina or Superstorm Sandy, many state and local governments enacted stricter building codes in an attempt to minimize damage and losses from future catastrophes.
- Local economic factors such as new job opportunities, local political climate and economic factors as inflation increase the amount of insurance premiums over time.
- Past claims – Those homeowners who have already had claims tend to pay more.
Established by company president John Roussel in 1985, Roussel Insurance & Financial Services was founded to assist business owners and professionals in their insurance and employee benefit programs. Our mission is to give you the peace of mind that your company and personal assets are properly safeguarded.
This information is intended for the client, individual or entity to which it is addressed. These articles contain concepts and opinions, and are not intended to represent the consensus of the insurance or risk community, nor to provide professional legal or tax advice. Please seek professional legal or tax counsel before making any decisions. The information provided does not change or modify any insurance policy, only the actual terms of the in-force policies will govern claim settlements.