"A Reddit user's homeowners insurance jumped from $2,155 to $3,088 in one year. That's a 43% increase, despite no claims. This scenario plays out across America. You maintain your home, avoid claims, and still watch premiums climb. The forces driving these increases are measurable and structural. Insurance now consumes roughly 9% of the typical monthly mortgage payment, the highest share on record. For many households, these increases strain budgets and complicate refinancing or home purchases."
"The average homeowner now pays $1,952 annually, a figure that has climbed steadily since the pandemic disrupted construction supply chains. That represents an 8.5% jump from just last year, adding real pressure to household budgets already stretched by inflation. The gap between general inflation and insurance costs reveals the problem. While core inflation hovers around 2.28%, the construction sector faces its own crisis."
A single policy example rose from $2,155 to $3,088 in one year, a 43% increase without any claims. Insurance now accounts for about 9% of a typical monthly mortgage payment, the highest share on record. The national average premium is $1,952 annually, up 8.5% from last year. Pandemic disruptions to supply chains, higher material prices, and labor shortages push rebuilding costs up roughly 4–5% annually. Core inflation sits near 2.28%. Insurers adjust coverage limits to reflect current replacement costs, causing premium increases even for homeowners with no claims.
Read at 24/7 Wall St.
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