It would seem to me, with home prices falling like they have over the past year or so that home insurance rates would also fall? Doesn’t that make sense? After all, the major portion of your home owners insurance premium is to replace your home if there is a fire or other major damage.
So, why are rates going up and up? I could understand it if we lived in Florida after a hurricane, but here in San Jose there have not been any major disasters lately that would affect rates on a mass scale like this.
Is it other factors, like liability coverage, or medical expenses? Even if these factors are justified in a premium increase, you would think that it would average out with lower property values and premiums would stay about the same.
It seems the home owners insurance companies are saying… “The economy sucks, we’re not making as much money as we did… we need more of yours”. Join the crowd. The economy does suck and many of us are hurting. So, let’s decide what we are going to do today, eat or pay higher premiums?
It’s not really that bad, but you get my point. Insurance companies have no justifiable reason to raise home owners insurance rates. It’s time to check the competition and keep them all honest.
Here is the link to check out home insurance rates like I did.