Wildfires drive sharp increases in US homeowners pricing: MarketScout
Across the US, the average rate increase in the third quarter of 2021 for personal lines was 6.6 percent as compared to up 4.75 percent in the second quarter, according to MarketScout.
The average homeowners rate increase is 4 percent for homes under $1,000,000 in coverage A value and 7 percent for homes over $1,000,000. For some catastrophe-exposed properties, premiums were up by more than 25% in some areas.
“We always expect more aggressive homeowners pricing in the third quarter of any given year as insurers begin to incur losses from wind and wildfire claims,” said Richard Kerr, CEO of MarketScout.
Kerr added: “The national average rate increases for homeowners are not horrific; however, for those with homes in California and Florida rates can be up as much as 25 percent. California homes $20 million and above with high wildfire exposures may not even be able to secure full coverage. Rate increases of 40% are not unusual.”
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