Homeowners in Arizona are reeling from staggering increases in their insurance rates, with some seeing their premiums double. Joe Conner of Phoenix is an example of a resident dealing with this financial gut punch. His homeowner's insurance policy leaped upward by more than $2,000, a sharp 50% increase that he did not see coming. "But to see such a significant jump about 50% of annual premium increase was definitely a shock,” Conner told AZ Family.
Insurance experts are sounding alarms over the rate hikes. Aliesha Brard, who has three decades of experience in the industry, remarked to AZ Family, "If I see somebody that has a 20% increase I think that’s good. But it’s not uncommon to see a 50% or 100% increase." Brard cites a slew of causes for the surging prices, including inflation, escalating labor costs, and a relentless onslaught of natural disasters.
2023 was disastrous for insurance companies. They responded to 23 separate catastrophic events, with each wreaking havoc to the tune of over a billion dollars. "The insurance industry in 2023 had 23 separate catastrophic crises that resulted in over a billion dollars from the insurance collective," Brard said. Areas like Lahaina faced substantial losses, while California was besieged by wildfires, adding to the insurers' burdens and, consequently, to the policyholders' woes.
Such outcomes have prompted major carriers to halt writing new policies, and other companies are outright refusing customers living in what's deemed too high-risk areas, like fire districts or flood zones. These restrictive measures leave homeowners with little choice but to shop around for better rates and hold out hope for fewer catastrophes in the upcoming year. "You just have to bite the bullet and do it,” lamented Conner in his conversation with AZ Family.
Brard advises homeowners to take preventive steps to keep their policies from inflating further. Homeowners should steer clear of claims, replace roofs every 15-20 years, inspect and update plumbing, and maintain their homes properly. These updates come via localized reports from Dakota News Now.
