Already plagued by stubbornly low home prices, homeowners soon may be facing another blow: rising insurance premiums.
After five years of relatively stable premiums, some of the country’s biggest insurers have raised rates or say they plan to. Premiums vary by state, but last year, State Farm Mutual Automobile Insurance says it increased homeowners rates 7.3% on average and, this year, has raised them in 18 states, including a few by more than 7%. It cut rates in just two states.
In Florida, upscale insurer PURE Risk Management raised premiums 11% this year. Fireman’s Fund Insurance says it has started to raise premiums in some areas; for some Pennsylvania homeowners, premiums shot up 33% last year.