How Inflation is Affecting Home Insurance Rates
Let’s face it. We’re all paying more at the gas pump, the grocery store, and wherever we go out to eat. Inflation has just become a reality. But have you realized what inflation is doing to your home insurance rates?
Why Are Home Insurance Prices Rising?
Did you know that the rising costs of things like lumber, construction, and metals, coupled with continued impacts to the supply chain, are forcing up the costs of your home insurance rates, too? To make things worse, the skilled labor shortages are adding to those higher costs, as fewer trade professionals enter the workforce in these necessary roles.
The costs of labor and materials are not the only factors. Additionally, the frequency of natural disasters is also on the rise, forcing insurance companies to pay out more frequently.
Annual homeowners insurance premiums are on the rise. In fact, they rose 11.4% between 2017 and 2020, according to S&P Global Market Intelligence. During that same time period, inflation also rose. The Consumer Price Index notes that Americans saw a 5.6% increase, which makes the higher insurance rates hurt even more.
With average salaries not seeing nearly the growth that the costs of products and services are, many homeowners are feeling the pressure on the purse strings.
How To Combat the Costs
The best way to combat these higher prices is to shop around, and ensure that you are getting the most cost effective plans for you. Homeowners should not skimp out on the coverage they need, but instead find trusted professionals to help them get the plans that both provide security and come with a comfortable price tag.
It is no easy task, at times, to adjust to such rapid increases in the cost of living. But cutting back on your home insurance coverage can leave you vulnerable to much greater losses in the long run.
We’ve Got Your Back
At Gretchen Rehm Financial, we know how important that bottom line can be in your family’s monthly budget. After all, we are raising our family right alongside yours in beautiful Southern Minnesota!
It is our focus to work diligently to find plans that make the most sense for you, while keeping your monthly costs down. You can trust our years of expertise!
To find out more about our dedicated service, visit our website. We are ready to put our skills to work for you!
