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>Ezra Croft has never filed an insurance claim, and his house in Raleigh, North Carolina isn't close to a stormy coastline or a fire-prone forest. >So Croft wa

by graeme 3y ago

>Ezra Croft has never filed an insurance claim, and his house in Raleigh, North Carolina isn't close to a stormy coastline or a fire-prone forest. >So Croft was surprised when his annual homeowner's insurance premium shot up to $1,600, or $700 dollars more than he was paying just a couple of years ago. Among other things, his insurance premium is paying for the costs of losses in high risk areas.

lotsofpulp 3y ago
I doubt it, why would an insurer charge extra to someone without the risks of living on a coast? Wouldn’t another insurer be able to offer lower premiums and take the business. I would bet it was simply increases in cost of labor for construction and materials, which means the cost of fixing his house has gone up, and so the insured amount has to go up too.
- toomuchtodo 3y ago
  All insurers are raising rates because their reinsurance costs are rising, as well as taking margin and reserves anywhere they can. https://www.reuters.com/world/us/us-property-catastrophe-reinsurance-rates-rise-up-50-july-1-report-2023-07-03/ https://www.reuters.com/world/us/us-property-catastrophe-rei... https://www.wsj.com/finance/insurance-companies-profits-stock-ebae7fd1 https://www.wsj.com/finance/insurance-companies-profits-stoc... | https://archive.today/2HTH9 https://archive.today/2HTH9 > One factor in the run-up in insurance stocks: the recent willingness of regulators to allow large rate increases, even in states traditionally seen as tough on the industry. Last month, Allstate won approval for auto-insurance rate increases of 30% in California, 17% in New Jersey and 15% in New York. The company had threatened to stop renewing policies in those states after suffering losses. > “Wall Street assumes that insurers will continue to face little regulatory resistance to rate hikes,” said Heller of the Consumer Federation of America. Greedflation comment reference: https://news.ycombinator.com/item?id=39550382 https://news.ycombinator.com/item?id=39550382

by graeme 3y ago

lotsofpulp 3y ago

I doubt it, why would an insurer charge extra to someone without the risks of living on a coast? Wouldn’t another insurer be able to offer lower premiums and take the business. I would bet it was simply increases in cost of labor for construction and materials, which means the cost of fixing his house has gone up, and so the insured amount has to go up too.

toomuchtodo 3y ago
All insurers are raising rates because their reinsurance costs are rising, as well as taking margin and reserves anywhere they can. https://www.reuters.com/world/us/us-property-catastrophe-reinsurance-rates-rise-up-50-july-1-report-2023-07-03/ https://www.reuters.com/world/us/us-property-catastrophe-rei... https://www.wsj.com/finance/insurance-companies-profits-stock-ebae7fd1 https://www.wsj.com/finance/insurance-companies-profits-stoc... | https://archive.today/2HTH9 https://archive.today/2HTH9 > One factor in the run-up in insurance stocks: the recent willingness of regulators to allow large rate increases, even in states traditionally seen as tough on the industry. Last month, Allstate won approval for auto-insurance rate increases of 30% in California, 17% in New Jersey and 15% in New York. The company had threatened to stop renewing policies in those states after suffering losses. > “Wall Street assumes that insurers will continue to face little regulatory resistance to rate hikes,” said Heller of the Consumer Federation of America. Greedflation comment reference: https://news.ycombinator.com/item?id=39550382 https://news.ycombinator.com/item?id=39550382