Yes, it’s true. Homeowners insurance prices have been increasing faster than health insurance prices. That comes as a shock to most people. The reason it’s such a shock is because homeowners insurance isn’t a political topic. Therefore, it doesn’t make the headline news. Nevertheless, the rapidly escalating prices of homeowners insurance is hurting consumers.
The Rapid Rise in Homeowners Insurance Prices
From the year 2000 through 2015, homeowners insurance prices increased at an average rate of 5.75% per year. During the same time, health insurance prices have increased at an average rate of 4.54%. At this escalation rate, home insurance prices double every 12.5 years. During the same period, health insurance prices doubled every 15.9 years.
Would you like more information on homeowners insurance prices in your state? If so, click this link to get home insurance rate information. The map on that page will take you to the state where you live. On the state page you will find more information about both home insurance rates and the companies selling insurance in your state.
The financial pain of these rapid increases comes from the reality that during this same period of time the median family income has doubled at at a snails pace rate of every 35.6 years. Unfortunately, this means American families are losing the ability to afford their lifestyle because the cost of protecting their lifestyle is increasing so much faster than their income.
How Consumers Can Protect Themselves
Consumers need to demand transparency. For the first time, there is transparency into the formerly opaque insurance industry. However, consumers need to demand more. Consumers are mandated to buy insurance. They deserve to know how companies behave when large claims are filed.
The newly found transparency that is currently available will help consumers in many ways. Finally, consumers can know the most important aspects of buying insurance, including:
- Price and value – is the price fair for the protection provided
- Protection – how good is the company about paying claims and honoring their promise to protect
- Service – is the service the company provides in line with what consumers expect
Changing The Way People Shop For Insurance
Transparency will change the way consumers shop for insurance. Now people can ignore the expensive advertisements and buy insurance from companies that apply the money that would have been spent on ads to compensating policyholders that need protection.
Best of all, now shopping for insurance is easy. Just click the button below and you can compare your home insurance company to three of the best home insurance companies in your state. Yes, it’s really that easy.
Data Sources: Homeowners insurance prices, Insurance Information Institute, iii.org. Health insurance prices and median family income, Federal Reserve Bank of St. Louis, https://fred.stlouisfed.org.