Dog-related claims have increased significantly in both frequency and cost, according to the latest claims data analysis from the Insurance Information Institute (Triple-I) and State Farm.
Roof repair and replacement cost value totaled nearly $31 billion in 2024, according to a report from Verisk.
Homeowners claims are taking longer to resolve than ever before with the average claim cycle time—from filing the claim to finished repairs—now 32.4 days, says J.D. Power.
“Although we may be coming out of one of the most difficult periods in insurance history, some areas might still see increasing premiums for another 12-18 months,” says independent agent Guffy Wright. “Factors like claim volume, social inflation, weather patterns and fraud will continue to play major roles.”
As homeowners premiums increase agents can help create understanding through education on why costs are up and what coverage options are available for their clients.
A client is planning a $400,000 house renovation. Would a builders risk policy be the best option to cover the renovation, or are there specific ISO homeowners endorsements that can be added?
It’s important that homeowners who undertake home improvements talk to their agent about what they’re planning to do or what they have done to better understand how that affects their insurance premiums and coverage.
“A home is a major financial investment for most people and if something bad happens to it, inadequate insurance can ruin their financial lives,” says independent agent Kelley Kimble. “As a homeowner myself, the adequacy of the policy is the greatest factor in my purchasing decision.”
The significant increases were driven by inflation, labor shortages and supply-chain disruptions, according to a Verisk report.
To keep premiums affordable, homeowners carriers are excluding coverage for what used to be standard covered perils. Cosmetic hail damage is one of those coverages that is increasingly becoming excluded.
