PHOENIX (3TV/CBS 5) – Joe Conner is, like many Arizona homeowners, trying to keep his expenses in check. But the Phoenix dad had no control over the huge hit he just took on his homeowner’s insurance policy, which suddenly shot up more than $2,000.
“Historically, that’s what you plan for, maybe 5% to 10%,” said Conner. “But to see such a significant jump about 50% of annual premium increase was definitely a shock.” Homeowners insurance premiums are skyrocketing across the state and around the country.
Aliesha Brard with the Homeowners Insurance Group has been in the business for 30 years and says she’s never seen rates go crazy like this in such a short span of time.
“If I see somebody that has a 20% increase I think that’s good,” said Brard. “But it’s not uncommon to see a 50% or 100% increase.”
So why exactly are insurance rates climbing so high? Brard said its a combination of things. Inflation, higher labor costs and all the natural disasters last year.
“The insurance industry in 2023 had 23 separate catastrophic crises that resulted in over a billion dollars from the insurance collective,” said Brard. “Think about Lahiana, a huge loss and all the major carriers were there. Think about California and all the wildfires they had. Think about Northern Arizona, we have a ton of wildfires.”
Things have gotten so bad that two major insurance carriers have suspended writing policies, while other companies are refusing to insure certain customers because they live in a fire district or flood zone that’s considered too high risk.
All homeowners can do is shop around for the best rate and hope there are fewer catastrophes this year. “You just have to bite the bullet and do it,” said Conner.”
According to Brard, the best thing homeowners can do to keep their policy from skyrocketing is:
- Try to avoid any claims
- Replace roof after 15-20 years
- Update and inspect plumbing regularly
- Maintain home
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