HOMEOWNERS in a US state are now being forced to fork out $8,000 per year as fees hit record highs.
Insurance rate figures have soared across the States, with the national average sitting at around $3,000 annually.
Homeowners in a US state are now being forced to fork out $8,000 per year as fees hit record highs[/caption]
But, the Midwest has some of the highest homeowner’s insurance rates in the country.
Property buyers in Nebraska have been warned rates can now reach as high as $8,000 per year.
Meanwhile those in Oklahoma can be required to spend $7,500 to protect their house.
Above average figures of $5,300 are also common in Kansas.
It’s thought this can be attributed to the occurrence of natural disasters such as tornadoes.
And, according to online insurance company The Zebra, citizens in California are having to find up to $1,800.
“Extreme weather is largely to blame for the surging homeowner rates that we’re seeing across the country,” said KTLA’s David Lazarus.
Wildfires continue to scorch state of California, with more than 387,000 acres burnt as of this week.
In January the LA wildfires claimed at least 16 lives and saw 150,000 people evacuated.
The infernos may be the costliest in US history, with insured losses potentially exceeding $20 billion, according to estimates published by JPMorgan.
Many major insurance companies such as State Farm, Nationwide, and Farmers pulled out of the state.
These big insurers cut coverage and canceled home insurance policies in areas at risk of wildfires to avoid more losses.
Seven out of 12 of the top insurers in California cut coverage in the state over the past four years, per the California Department of Insurance.
The insurance report from The Zebra underlines how extreme weather is impacting spiking costs.
Some providers are restricting coverage altogether, which has seen many homeowners seek help from FAIR Plan – a more expensive alternative.
Its insurance policies generally have higher rates and less coverage than private insurers.
Around half a million Californians are relying on the FAIR Plan, which has doubled in size over the past five years.
This comes after we reported last month how one of the nation’s largest insurance companies would soon spike insurance rates.
On August 15, State Farm increased insurance rates on Illinois homeowners by more than 27%.
That translates to a boost of about $746 to the average homeowner’s insurance premium.
“These changes will cost Illinois homeowners hundreds of additional dollars per year without a state-based justification or corresponding increases in protection,” Illinois Gov. JB Pritzker told Fox Business.
State Farm said it’s jacking up costs because of what it’s paying out in the state.
The company said home insurance claims costs are exceeding premiums collected in Illinois.
It mentioned that in 2024, total costs accumulated to $1.26 for every dollar in premium it collected.
The company also said it paid out more in hail damages in Illinois than any other state except Texas.
While Illinois doesn’t typically deal with severe weather like wildfires or hurricanes it does face fierce thunderstorms.
As soaring prices continue, we revealed some tricks property owners may not know to save big on home insurance.
Amazon can send the gadgets right to your doorstep, or you can pick them up from Walmart for less than $20.
Homeowners are rewarded with reduced insurance costs if they take excellent care of their properties.
Reducing risks by ramping up security or by adding extra protective measures is a great way to get massive savings.
To get at least 5% off rates, homeowners simply have to make sure that smoke alarms are installed on their ceilings, according to the Insurance Information Institute.
Another cheap item found at Walmart that can slash rates is a deadbolt lock.
And, if a property owner installs sprinklers that can put out fires or a security system that immediately alerts the cops of intruders, premiums could be reduced up to 20%.
Ways to lower your home insurance premiums
If your premiums are going up, there are ways you can save.
- Compare quotes from different companies
- Switch insurers if you find a better deal
- Consider bundling policies if it saves you money
- Consider taking a higher deductible
- Make your home more disaster-resistant for discounts
The national average home insurance sits at around $3,000 annually[/caption]
