Experts: Homeowners may soon see higher insurance rates
AMARILLO, Texas (KFDA) - The average cost of homeowners insurance rates is going up.
Since 2017, premium rates for home insurance is up 11 percent.
Home repairs cost more, construction costs are up and the product supply chain is damaged. All of these factors impact what homeowners are paying for their home insurance.
According to the Washington Post, the average homeowner spends about two percent of their household income on home insurance.
“Every time we read about a disaster or wildfire or weather, [like] hail storms, that’s going to translate back into the cost of insurance,” said Greg Glenn, Coldwell Banker real estate broker.
“We are seeing increases in both homeowners and auto insurance, we can relate it to the cost of almost everything is going up - the cost of wood, the cost of fuel, everything that goes into building a home is currently increasing right now,” said Rich Johnson, director of communications with the Insurance Council of Texas.
Homeowners insurance comes with some guarantees - to pay for repairs, or in some cases, to pay to replace your home in the event of a disaster.
What is not guaranteed is the amount that will come out of your pocket yearly to pay for that peace of mind.
“Insurance, I don’t know that I’ve ever seen it go down. There have been some years that it didn’t go up. A way around those costs increases might be how you evaluate how much risk you want to take as the individual,” said Johnson. “What I would suggest to save a few dollars is to call your insurance company to raise your deductible. If you can raise your deductible, you might be able to save a few dollars, but make sure that you have that money.”
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