Homeowners paying hundreds more as insurance rates surge
CFA: Insurance premiums increased in 95 percent of zip codes from 2021 to 2024
(InvestigateTV) — People across the country have seen their insurance bills climb, walloping their wallets.
“It’s hitting really hard in many places around the country,” Abe Scarr with the Public Interest Research Group (PIRG) said.At the Consumer Federation of America’s (CFA) annual consumer assembly in Washington, D.C., Scarr spoke about tracking the rise in home insurance premiums.
A report from the CFA found that homeowners saw a 24 percent increase in insurance premiums over the past three years. From 2021 to 2024, the annual costs for a typical policy jumped by an average of $648 dollars across the country.
Scarr said the main driver behind those spikes is extreme weather.
“And actually, the biggest contributor to catastrophe losses for the insurance companies is actually from wind and hail, not from these wildfires or hurricanes,” he shared. “So, we’re seeing big increases across the country in homeowners’ insurance.”
Scarr said the increased prices are making it harder for people to stay in their homes, or to even buy one at all.
“We’re also seeing a big increase in insurers dropping coverage without notice, he noted. “So, you know, a policyholder may have been with an insurance company for many years, and when it comes time to renew, they’re just dropped for no reason.”
He said while legislation has been proposed and reform ideas discussed, no action is being taken right now.
In the meantime, he recommended that people should compare policies.
“And that could also include, getting a rate from an insurer who may give you credit if you do things that make your home safer,” Scarr stated.
He also encouraged homeowners to press lawmakers to act.
“Your state representative, your state senator, even if there’s not pending legislation, you don’t know what’s going on in your state house,” he listed. “When legislators hear from constituents that this is a problem affecting them, it’s more likely they’ll take action.”
Scarr also said those that believe their insurer acted unfairly, can file a complaint with their state insurance commissioner. These offices track problems with insurance companies – and, in some cases, that can lead to enforcement action.
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