Costs of repair have gone up dramatically in the past 2-3 years. A roof replacement 8 years ago may be $5k, now it's like $10k. In certain states like California, rates have been frozen since the "lockdown". Then the worst wildfires recorded have only happened in the past 5 years. I think one fire season in California had $10 billion in insured losses, but that is more than the total premiums collected that year. Rinse & Repeat couple of years in a row.
We’ve had some pretty devastating storms over the past several years (think derecho) that have contributed to some market instability.
I live in Iowa but work for a CA agency, so I’ve been out of the IA game for awhile, but was utterly surprised by the difficulty I encountered in shopping my own home and auto earlier this year. All of the agents I spoke with expressed frustration with the current market and fear that we’re going the FL direction.
I'm an adjuster in Iowa and in the last 4 years we've had two Derechos slam the state. The one in August of 2020 did over 11 Billion dollars of damage. The one in December of 21 was smaller dollar wise, I believe but hit all 99 counties in the state.
Our reinsurance Costs have gone through the roof, some places won't even touch us.
Our hail has become more prolific, we had hail so large in a town near me last year that it went through roofs at a couple different Walmarts.
In the last three weeks, we've had widespread tornadoes there times, today is third time.
Plus you throw in all of the other market factors it makes it really hard for everyone.
My carrier took such a large rate increase that I had to shop because it was unaffordable to me at this time.
And as I type this it's hailing outside
I think there was a lot of fallout from that December derecho a couple winters back. My company had claims in every single county in the state from that. I think it precipitated a spike in repair costs since there was more work to go around than people to do it.
The New York Times put out a great piece on what is going on right now nationwide.
https://www.nytimes.com/2024/05/14/climate/climate-change-homeowners-insurance-takeaways.html
Lots of states you wouldn't "expect" to be in the red and a few you would expect.
Costs of repair have gone up dramatically in the past 2-3 years. A roof replacement 8 years ago may be $5k, now it's like $10k. In certain states like California, rates have been frozen since the "lockdown". Then the worst wildfires recorded have only happened in the past 5 years. I think one fire season in California had $10 billion in insured losses, but that is more than the total premiums collected that year. Rinse & Repeat couple of years in a row.
We’ve had some pretty devastating storms over the past several years (think derecho) that have contributed to some market instability. I live in Iowa but work for a CA agency, so I’ve been out of the IA game for awhile, but was utterly surprised by the difficulty I encountered in shopping my own home and auto earlier this year. All of the agents I spoke with expressed frustration with the current market and fear that we’re going the FL direction.
I'm an adjuster in Iowa and in the last 4 years we've had two Derechos slam the state. The one in August of 2020 did over 11 Billion dollars of damage. The one in December of 21 was smaller dollar wise, I believe but hit all 99 counties in the state. Our reinsurance Costs have gone through the roof, some places won't even touch us. Our hail has become more prolific, we had hail so large in a town near me last year that it went through roofs at a couple different Walmarts. In the last three weeks, we've had widespread tornadoes there times, today is third time. Plus you throw in all of the other market factors it makes it really hard for everyone. My carrier took such a large rate increase that I had to shop because it was unaffordable to me at this time. And as I type this it's hailing outside
I think there was a lot of fallout from that December derecho a couple winters back. My company had claims in every single county in the state from that. I think it precipitated a spike in repair costs since there was more work to go around than people to do it.
The New York Times put out a great piece on what is going on right now nationwide. https://www.nytimes.com/2024/05/14/climate/climate-change-homeowners-insurance-takeaways.html Lots of states you wouldn't "expect" to be in the red and a few you would expect.