Latest news with #homeownersinsurance
Yahoo
22-05-2025
- Business
- Yahoo
First-Time Buyers Beware: Homeowner's Insurance Rates Surge up to 59% in These Hot Markets
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Spiraling homeowner's insurance premiums are hitting first-time buyers hard, lifting typical home ownership expenses to budget-busting levels. According to the Consumer Federation of America, the average premium has jumped 24% in the last three years, from $2,656 in 2021 to $3,303 in 2024, costing Americans $21 billion. Leading the pack, Utah, Illinois and Arizona rates have soared 59%, 50% and 48%, raising stress levels in Salt Lake City, Chicago and Phoenix. It is getting prohibitively expensive for many younger professionals to buy their first homes. Those who do pass affordability requirements assume buying power will grow as careers mature and often take mortgages on the most expensive homes they can afford. Surging insurance premiums are upsetting those calculations, especially when added to rising property taxes, a tough job market and childcare costs that now average $12,472 per year, according to the Visual Capitalist. Don't Miss: Hasbro, MGM, and Skechers trust this AI marketing firm — Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – What exactly is homeowner's insurance and why do you need it? The typical policy covers the main dangers of home ownership through four components: dwelling (the house), personal property (your stuff), liability (injury to others) and additional living expenses. Mortgage companies require proof of homeowner's insurance before they will lend you money. Once paid off, there is no legal requirement to maintain coverage, but the risk of 'self-insurance' can be catastrophic. Carriers blame rising premiums on inflation and climate change. The cost of materials to repair a home after a fire or fallen tree went ballistic following the pandemic and could spiral again if tariffs take hold. Their concerns with climate change stem from the devastating wildfires in recent years. Utah Insurance Commissioner Jon Pike drove this point home, telling the Utah Legislature's Business and Labor Interim Committee the record-breaking 59% hike was due to homes built along the Wasatch Front and other high-risk wildfire zones in the past decade. First-time home buyers can cross their fingers and hope rates come down or pray that career gods will be kind with big promotions. However, a better plan will follow these three simple steps to get ahead of this emerging crisis. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Compare quotes from at least five carriers in your state or locality. You can do this anonymously online with just a ZIP code and reasonable estimate of home value. Then ask neighbors who insure their properties, and if they are satisfied with service and cost, because the cheapest quote isn't the best deal if the carrier turns down legitimate claims. Repeat this process annually because insurers may offer cheaper promotions to first-time customers and then hike premiums by double digits after the first year. Standard automated quotes may set deductibles lower than you need, depending on income and assets. So, It's a good idea to ask for pricing tiered on different deductibles so you can compare costs. Choosing the right liability limits is a tougher call. Picking a lower limit will save money initially but raise the risk of a legal judgment that exceeds coverage, forcing you to pay the balance out of your own pocket. Insurance carriers offer standard discounts when you bundle home and auto coverage. Policyholders also get a break after installing home security and fire safety systems. An upgrade as simple as a smoke detector could bring the premium down to a level that won't bust the bank. Other rebates offered regionally include new home, new roof, wildlife mitigation, water leak detection, green home and gated community/homeowner's association discounts. Read Next: , which provides access to a pool of short-term loans backed by residential real estate with just a $100 minimum. Invest Where It Hurts — And Help Millions Heal: Image: Shutterstock Send To MSN: 0 This article First-Time Buyers Beware: Homeowner's Insurance Rates Surge up to 59% in These Hot Markets originally appeared on
CBS News
17-05-2025
- Climate
- CBS News
Penn Hills woman still cleaning up after last month's severe storms
A woman in Penn Hills is still cleaning up after severe storms ripped through western Pennsylvania in late April. Cynthia Ames can't seem to catch a break. "This is overwhelming," she said. More than two weeks after April 29's intense storms, she is still left with a big mess to clean up at her home. Piles of branches and logs are littered across her yard "I don't have tools," Ames said. "I have clippers. That's it. And so I come and cut what I can with the clippers." Her and her son's cars were totaled during the storm. She said they didn't have comprehensive car insurance. Their fence, roof, and heating and cooling system were also damaged. She added that she has chronic obstructive pulmonary disease, saying it's not safe for her not to have air conditioning. "I'm exhausted and I can't sleep at night because I have sleep apnea and COPD," she said. "I just cough all night." "There's dust and debris," she added. "So we all got sick from that, whatever debris came through the HVAC system into this house." She can't even begin to think about making repairs. She is also paying $800 a week for a car to get to work. "We can't even pay the bills right now," Ames said. "We're paying to get to work. We're paying for a car to get to and from work so we can maintain our jobs." Ames told us she's still waiting to hear back on her homeowner's insurance, but she's confident she won't have to pay for everything
Bloomberg
13-05-2025
- Business
- Bloomberg
State Farm Wins 17% Emergency Rate Hike for Homes After LA Fires
State Farm has been approved for an emergency 17% rate increase on homeowner insurance policies in California, part of an effort to shore up the state's largest insurer after the devastating wildfires in the Los Angeles area. The hike, which takes effect in June, also allows a 15% boost for condo coverage, according to Insurance Commissioner Ricardo Lara. It follows a three-day hearing in April, where an administrative law judge found that the adjustment balanced consumer protections with the company's financial stability. The judge's proposed order was adopted by Lara on Tuesday.
CNET
08-05-2025
- Business
- CNET
Moving Insurance 101: Is It Worth It for Your Next Move?
Choosing to use a moving company may not be the cheapest option, but it can alleviate a lot of stress, which can justify the price for many people moving. Of course, you'll still need to pack everything yourself and this route presents you with another set of things you may stress about, like what could potentially happen to your stuff when it's in transit to your new home or apartment. When a moving company is moving your things to their destination, boxes can shift, items can break, and things could potentially get lost. Luckily, most companies offer some sort of reimbursement for these situations, but there's usually a cap on how much you can get back. If you're moving several expensive items or just want the peace of mind that your stuff is covered, you should look into moving insurance. Applying for moving insurance will require you to take an inventory of your items and appraise them. With the total value of your belongings in mind, you'll be able to begin shopping for insurance plans. You may even have some sort of moving insurance if you also pay for homeowner's or renter's insurance, so it'd be wise to look at any existing plans you may have first. For more moving tips, don't miss the best moving companies for 2025 and how to change your address on your phone after you move. What is moving insurance? When thinking about moving insurance, there are two things to consider -- the valuation that moving companies provide for damages and third-party moving insurance for additional coverage. Moving companies themselves are not technically allowed to sell actual insurance policies. Interstate moving companies are required by federal law to provide both "released value protection" at no cost and "full value protection," usually for an additional fee. These are two methods for reimbursing customers for items damaged or lost. Additional, third-party moving insurance can protect your belongings in case they are lost, damaged, stolen or destroyed by fire or other disasters. The compensation you receive for losses will depend on the type of moving insurance you choose -- you could get very little in the case of damages or have everything fully replaced and repaired. Some moving companies work with insurance providers to offer policies, while others will require you to find insurance on your own. What is the difference between released value coverage and full value coverage? Most moving companies provide released value coverage at no additional cost. The Department of Transportation requires all movers to provide it and many states mandate it as well. Released value coverage: With this type of coverage, movers will evaluate the value of your belongings' weight on a per item basis, offering $0.60 per pound. So you know that LG C5 OLED you paid over $1,000 for? If it breaks in transit, you'll receive a total of $21.30 for the 55-inch version since it weighs a little over 35 pounds. With that type of math, it's hard to even call this coverage. Full value coverage: Considering how little you'd be reimbursed for your items with the released value coverage option, you'll want to consider full value protection. While it's not free (and may not be cheap), it's better than nothing. Full value protection requires the moving company to either replace, repair or offer a cash settlement for the lost or damaged item. "Under this option, movers are allowed to limit their legal responsibility to loss or damage to items of 'extraordinary value,' meaning items that are valued more than $100 per pound (such as jewelry, china, or furs)," per the Federal Motor Carrier Safety Administration. While this protection doesn't cover any item that would be valued at over $100 per pound, the movers will still be responsible for transporting said items safely. These high-value items will need to be disclosed to the movers, regardless of their disqualification of coverage. Remember that two types of coverages are required to be offered by moving companies for interstate moves only. If you're moving within your state, there may be specific regulations in place. The FMCSA suggests that you should, "Check with your state, county or local consumer affairs agency or state moving association if you're moving to a new location within the same state. How is moving valuation coverage different from moving insurance? Remember that moving companies' valuation coverage isn't insurance. It's a system for reimbursing you for lost or damaged items. A moving insurance policy requires you to sign a contract in which you pay an agreed upon premium for a specific amount of financial coverage. Whereas valuation coverage only deals with damage caused by movers, moving insurance is generally broader and covers events like fire, theft and other losses. Should I buy moving insurance? If peace of mind means anything to you, then yes, it's probably worth paying extra for moving insurance. That doesn't mean it may make less sense for some people to go for it, though. If you don't have a lot of stuff or aren't moving very far, then it may be wise to get a quote from a company and see if it makes sense for you. Most movers are required to provide valuation coverage for handling your belongings, but which type you choose (released value coverage or full value protection) dictates how much you're reimbursed in the event of damage or loss. If you're only accepting released value coverage, you may want to supplement with a separate insurance policy that protects all of your possessions from a wider range of calamities. What else should I know before buying moving insurance or coverage? Moving companies don't cover damages inside boxes you packed, unless the boxes are obviously damaged on the outside. "You may consider packing your own household goods articles to reduce your costs, but if the articles you pack are damaged, it may be more difficult to establish your claim against the mover for the boxes you pack," the Department of Transportation writes. Packing perishable, dangerous or hazardous materials in your household goods without your mover's knowledge may limit your mover's liability. So will choosing released value coverage when your belongings are worth more than the standard 60 cents per pound evaluation. What happens if my belongings get damaged during the move? This is where an extensive inventory of your possessions will come in handy. While this may be something required for you to create for insurance policies, it's also important for you to have if one or more of your items are damaged during the move. The simplest way to do this is to list all of your belongings along with their values and current conditions before they leave with the movers. If you have the time and are willing to put forth the effort, you can also take photos of your items. The idea is to be able to prove that your items were damaged by the movers and not prior. If your belongings do get damaged or lost during a move, you'll need to report those lost or damaged articles by filing a claim with your mover within nine months of the delivery date. For more moving tips, check out 7 must-have moving apps and tips for first-time movers.
