By: MarketScout
Catastrophe Exposed Homeowners Up Over 25% in Some Areas
Across the US, the average rate increase in the third quarter of 2021 for personal lines was 6.6 percent as compared to up 4.75 percent in the second quarter.
“We always expect more aggressive homeowners pricing in the third quarter of any given year as insurers begin to incur losses from wind and wildfire claims,” said Richard Kerr, CEO of MarketScout.
The average homeowners rate increase is 4 percent for homes under $1,000,000 in coverage A value and 7 percent for homes over $1,000,000. Kerr pointed out, “The national average rate increases for homeowners are not horrific; however, for those with homes in California and Florida rates can be up as much as 25 percent. California homes $20M and above with high wildfire exposures may not even be able to secure full coverage. Rate increases of 40% are not unusual.”
The National Alliance for Insurance Education and Research conducted pricing surveys used in MarketScout’s analysis of market conditions. These surveys help to further corroborate MarketScout’s actual findings, mathematically driven by new and renewal placements across the United States. A summary of the third quarter 2021 personal lines rates is set forth below.
| Personal Lines | |
| Homeowners under $1,000,000 value | Up 4% |
| Homeowners over $1,000,000 value | Up 7% |
| Automobile | Up 4.7% |
| Personal Articles | Up 4% |
Source: MarketScout
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