Rates rising for Nevada homeowners, tenants; LA wildfires not the cause | Housing

Over 100,000 Nevadans will see an increase in their homeowners or renters insurance in the first half of the year.

Twelve insurers have been approved for rate changes by the Division of Insurance through the month of May, with some experiencing a 25 percent increase. But the majority of those insurers already raised rates in January.

Reason for rate changes

The DOI highlighted multiple reasons for the rate changes in Nevada, including: rising real estate, repair and labor costs due to inflation and Nevada’s aging house stock requiring more maintenance, and natural disasters.

“Real estate and home values have risen. Inflation, construction materials costs, and skilled labor availability are driving up the costs of rebuilding and repairing properties,” said a spokesperson from the DOI. “Nevada’s housing stock is aging, which means key home components—such as roofing, electrical systems, and plumbing—may require updates or maintenance.”

In January, Southern Nevada broke a record with the highest ever recorded median house price at $485,000, according to Las Vegas Realtors. The valley is in a housing crisis as a lack of land to develop has coupled with high mortgage rates, a slowdown in building and increased construction and labor costs.

While the Los Angeles wildfires raised concerns for Nevada homeowners and renters, the Department of Insurance said homeowners and renters insurance will not be directly affected by the California wildfires.

But Nevadans’ policies could be indirectly impacted by higher reinsurance costs, or insurance for insurers, and tighter underwriting standards.

“Nevada insurers relying on reinsurance may face higher costs in the future, which could lead to potential rate increases,” said a spokesperson from the DOI. “Increased claims and environmental risks could prompt insurers to adopt stricter underwriting standards, potentially making coverage less available or more expensive in high-risk areas.”

Additionally, the mere risk of a natural disaster may impact a rate change, with housing repairs costs on the rise, but the DOI ensures the data is only Nevada-based.

“Natural disasters are more costly now, and they are happening more often and in areas that, historically, have not been as frequently affected in the past,” said the DOI.

All insurers must go through the Nevada Division of Insurance when requesting a rate change. From there, the DOI says its actuarial team rigorously reviews the requested rate change to ensure the new policy is not “excessive, inadequate, or unfairly discriminatory.”

“The mission of the Nevada Division of Insurance is to protect the rights of Nevada consumers in their experiences with the insurance industry and to ensure the financial solvency of insurers,” said the DOI.

Rate changes for Nevadans

Nine different insurers raised their rates in January alone.

Root Insurance was approved for a 25 percent rate change for tenant insurance, but had a requested rate change of 55.3 percent. The new policy went into effect on Jan. 6 and it impacted 453 Nevadans.

Hartford Insurance raised three of its home insurance combinations policies in January, all went into effect on Jan. 9.

Home insurance combinations for Hartford Accident and Indemnity, Hartford Fire Insurance and Hartford Insurance Company of the Midwest were raised by 1.68 percent, 5.79 percent and 4.83 percent, respectively, affecting a total of 1,197 Nevadans. They each requested a rate change of 7.11 percent.

Trumbull Insurance Company was approved for a 4.86 percent rate change for home insurance combinations, but had a requested rate change of 7.11 percent. The new policy went into effect on Jan. 9 and it impacted 10,702 Nevadans.

Mercury Casualty Company was approved for a 16.11 percent rate change for home insurance combinations, but had a requested rate change of 19.39 percent. The new policy went into effect on Jan. 10 and it impacted 14,603 Nevadans.

American Modern Property and Casualty Insurance was approved for a 4.94 percent rate change on mobile home insurance, but had a requested rate change of 8.4 percent. The new policy went into effect on Jan. 15 and it impacted 8,892 Nevadans.

Foremost Insurance was approved for a 21.51 percent rate change for owner-occupied home insurance, but had a requested rate change of 21.55 percent. The new policy went into effect on Jan. 15 and it impacted 792 Nevadans.

Acuity A Mutual Insurance had two rate changes in January for owner-occupied home insurance. Both going into effect on Jan. 30, 1,675 Nevadans will experience a 4.98 percent increase and 752 Nevadans will experience an 8.04 percent increase. The requested increase was 6.7 percent and 8.8 percent, respectively.

Starting Feb. 16, 63,226 Nevadans with Travellers Property Casualty Insurance’s Home Insurance Combinations will see a 0.007 percent rate increase, with a 1.6 percent requested rate increase.

On March 9, four different Country Preferred homeowners and renters insurance policies will increase, including tenant, owner-occupied home, condominium homeowners and “other homeowners.”

Those with tenants insurance will see a 4.62 percent increase, but they requested a 4.91 percent increase. Owner-occupied home insurance will see a 9.19 percent increase, but they requested a 39.21 percent increase. Condominium owners will see a 28.59 percent increase, but they requested 30.53 percent. Other homeowners will see a 19.41 percent increase, but they requested 20.85 percent.

In total, the Country Preferred rate increases will affect 17,903 Nevadans.

American Economy Insurance ratepayers with home insurance combinations will see a 25.04 percent rate increase, but they requested a 57.78 percent increase. It will affect 11,972 Nevadans and will go into effect on March 15.

Finally, on May 15, Privilege Underwriters Reciprocal Exchange home insurance combinations holders will see a 13.63 percent rate increase, but they requested 16.8. It will affect 1,509 Nevadans.

Contact Emerson Drewes at edrewes@reviewjournal.com. Follow @EmersonDrewes on X.