Changes in house insurance premiums are dependent on many individual factors.
Occasionally, when a disaster affecting thousands of homes happens, insurance premiums will rise accordingly to cover the substantial loss by insurance companies.
In 2021, severe weather events cost governments, taxpayers and insurance companies 2.1 billion dollars.
In order to recover their losses, some insurers have increased homeowners’ insurance premiums by 15 - 20 per cent. Deductibles for weather-related claims, such as sewer backups, have also increased from $1,000 to $2,500, and some insurers have removed this coverage from their standard policies - requiring homeowners who want this protection to pay extra for it to be included in their coverage.
Also noteworthy is that some insurers have 'capped' the amount they will pay on weather-related claims.
If you've noticed and are concerned about an increase in your home insurance premium, or if you're unsure of what your policy covers, please call our office at 519-736-8228