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Why are insurance costs rising for homeowners?

By Citizens Insurance

Why are insurance costs rising for homeowners?
Recent trends are impacting how much protection you'll need and the price you'll pay for it. (Photo by Getty Images)

Click here or call (248) 681-2100 to request a home insurance quote!

More severe weather

There have been 18 weather/climate disaster events in the U.S. in 2021 with losses exceeding $1 billion in damage. The increase in severe weather caused 39% of all U.S. home insurance claims.

Higher Material Costs

With the cost of of building materials up an average 26%, homes have become more expensive to fix and replace.

Increased shipping costs and delays

The pandemic has impacted almost every part of the global supply chain causing shipping delays and higher prices. 95% of fortune 1000 companies have reported supply chain disruptions from Covid-19.

More fire damage

Newer homes burn more nearly 6x faster than older ones due to the use of synthetic materials and open-floor plans, resulting in more total losses from fire and higher rebuild costs.

Higher labor costs

Nearly 90% of contractors are having a hard time finding craft workers and 88% of firms are experiencing project delays. Higher labor costs drive up the price of materials leading to a rise in home insurance.

Bigger, upscale homes

Home interiors have become more upscale with custom cabinetry, hardwood floors, finished basements and more, leading to higher replacement costs when damages arise.

Increase in water damage

Water damage and freezing losses have increased by more than 10% from 2017 to 2019.

We can help you avoid your home being underinsured, contact a Huttenlocher Agent today!

Proudly offering homeowners insurance in Waterford, Troy, Farmington Hills, Southfield, Rochester Hills, Bloomfield Hills, Ferndale, Pontiac, Royal Oak, Novi, Commerce, Orion, Independence, White Lake, Madison Heights, Oak Park, Auburn Hills, Oxford, Birmingham, and Highland, Michigan. As well as Oakland, Macomb, Wayne Counties, and surrounding areas.

The Huttenlocher Group

1007 W Huron St, Waterford , MI  48328

(248) 681-2100

1007 W Huron St, Waterford Twp, MI 48328

(248) 681-2100

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