Homeowners insurance premium rates are rising faster than inflation, S&P Global Market Intelligence data shows, and Triple-I’s chief insurance officer says they’re likely to keep climbing.
From 2017 through 2020, premium rates are up 11.4 percent on average countrywide, according to S&P. Recent factors include rising material costs and supply-chain disruptions that are driving up home-replacement costs — and insurers are adjusting premiums accordingly.
The countrywide average annual premium has increased to $1,398 in 2021.
‘From everything I know about homeowners’ risk, I expected those numbers to be higher,’ Triple-I’s Dale Porfilio told the Washington Post. ‘Honestly, I would say they still should go up further.’
Most mortgage lenders require borrowers to carry homeowners insurance. According to a recent Bankrate.com analysis, the average homeowner spends about 1.91 percent of household income on home insurance.