This is an article about why home owners insurance has taken significant increases in the market place
1. Weather Losses : One of the major drivers of insured losses in 2023 were convective storms ( thunderstorms, hail, tornadoes etc.) with losses of approximately $54 billion
2. Rising costs of rebuilding and repairing homes: Global supply chain issues, tariffs, inflation and increased demand for raw materials help to make prices higher for components like lumber, steel, and appliances.
3. Labor Shortages: Mike Rowe stated: “Every year for the last 12 years for five tradesmen who retire and leave the work force, two replace them.” This significant shortage of skilled construction workers has lead to increased wages and a higher overall cost to attract and retain employees.
4. Regulatory Costs: Local zoning laws, permit fees, inspections help add to the cost of rebuilding and repairing costs.
These increased costs directly translate into higher dwelling coverage limits and consequently, higher premiums.
