The market inflation is driving above-average premium increases
Starting this summer many homeowner policies may see higher average premium changes at renewal than they’re used to.
The inflation guard component of a home policy increases each year to reflect the gradual increase in the cost to rebuild a home, ensuring that homeowners continue to have adequate coverage.
However, from time to time, inflation in the housing market forces more significant changes, which customers experience as higher-than-normal premium increases.
The industry is currently facing a perfect storm of historically strong housing demand and skyrocketing labor and materials costs that require one of these outsized inflation guard increases.
Renewal offers with higher-than-average premium increases have started rolling out early this summer.
If you have any questions, or need assistance, please contact us and we will be happy to assist in any way we can.
Article Provided by: Jeff Encke, Safeco/Liberty Mutual Insurance