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Study Reveals Inflation and Climate Change Cause Insurance Premiums To Reach Record Highs — Even For Homeowners With High Credit Scores
Matic , a leading insurtech platform, today released its mid-year premium trends report , highlighting insights from 45 property & casualty insurance carriers. Over the past eight years, Matic has been keeping a pulse on trends from this growing network of carriers across home, auto, and other personal lines of insurance.
According to Matic’s 2022 mid-year findings, which aggregated data from a random sample of 70,000 insurance policies and 5.4 million quoted properties, home insurance premiums in the US are rising faster than ever before — increasing at a record rate of 5.5% between June 2021 and May 2022. Comparatively, premiums rose just 1.1% between June 2019 and May 2020 and 3.9% the following year. A premium increase of 5.5% impacts homeowners by an extra $68 on average for a 12-month policy.*
This sharp rise in premiums correlates with skyrocketing Coverage A, or dwelling coverage — with an increase of nearly 10% noted between June 2021 and May 2022.* These increases, driven by the rising cost of building materials, skilled labor shortage, and an uptick in severe climate and weather-related disasters, are not expected to slow down any time soon. Additionally, record-high inflation rates are contributing to the growing cost to […]