HomeHome InsuranceHow to deal with home insurance rate hikes

How to deal with home insurance rate hikes


A recent Consumer Reports survey found that 83% of long-term policyholders have seen their rates increase over the last five years.

ATLANTA — Homeowners nationwide are facing a crisis: skyrocketing insurance premiums or outright policy non-renewals, even in areas traditionally considered low risk. 

Kenyetta Twine is one of the millions of people who are finding out their insurance policies are about to cost significantly more or be canceled outright. 

“In August, I got an email saying my insurance was canceled,” Twine said. “I said, oh my gosh, what am I going to do?”

It might seem like this would only happen in places with hurricanes or wildfires, but that’s not the case. Across the country, insurers are more aggressively canceling policies and jacking up rates. 

A recent Consumer Reports survey found that 83% of long-term policyholders have seen their rates increase over the last five years. When this happens, homeowners may be forced to make trade-offs like buying substantially reduced coverage or sometimes going without coverage. 

Insurance industry experts point to several factors that are driving these changes. Building costs are through the roof — up to 40% over the last four years. 

And Mother Nature isn’t helping either. Last year alone, weather disasters cost insurance companies $93 billion. In general, rates have risen nearly 34% for consumers across the United States from 2018 to 2023. 

So, what can one do if one’s insurance is canceled? 

First, contact your insurer or broker to find out why your policy isn’t being renewed. At the same time, start shopping around for a new policy. Consider using a local, independent insurance agent or broker who works with multiple insurers, as they may know about smaller companies in your state or area. 

If you can’t find a private plan, there’s something called Fair Access to Insurance Requirements or FAIR plans, which are offered in nearly three dozen states. Ideally, this plan should be considered as a last resort as it’s not cheap and it doesn’t cover everything. However, it is better than having no insurance. 

As for Twine, she was able to find a new insurance company with a little help from Consumer Reports. 

“I had looked at Consumer Reports magazines, and there was an article about insurance. I looked at the top ones. And now I have insurance and no problems,” Twine said. 

A final tip is if you get a cancellation notice, immediately call your insurance company and ask for more time. While they’re not required to give an extension, as a courtesy, they might provide an extra 30 or even 60 days if you ask.

                                                                                                                                                                                                                                                       



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