An insurance premium that ratchets up almost $1,000 over a few years is the kind of unwelcome surprise that every homeowner dreads, but that’s what happened to Cliff and Laura Pasquello, now of North Carolina, when they owned a home in Pennsylvania. “We had only owned [it] for five years, since 2019. And in that five-and-a-half-year span, we saw our premium jump from about $1,300 to almost $2,300,” Laura Pasquello told WVIR 29 News (1), adding that there had been no hurricanes or floods over that period. ...

Core Insights - The cost of insuring homes and cars in the United States has significantly outpaced inflation, with homeowners' insurance premiums increasing over 40% nationwide in the past six years and a 10.4% jump in 2024 alone [1] - Specific states have experienced even more dramatic increases, such as Utah, where rates have surged nearly 60% in three years, and auto insurance rates rising 56% since 2020 [2] - Factors driving these premium increases include environmental changes, economic pressures, and structural issues within the insurance industry [4][5] Group 1: Premium Increases - Homeowners' insurance premiums have increased by more than 40% nationwide over the past six years, with 2024 seeing an average rate increase of 10.4% [1] - In Utah, homeowners' insurance rates have risen nearly 60% in three years, while auto insurance rates have increased by 56% since 2020 [2] - A Kansas homeowner experienced a 47% increase in his homeowners insurance premium, from approximately $1,300 to nearly $1,900 in two years, despite not filing any claims [3] Group 2: Factors Driving Increases - A combination of environmental, economic, and structural factors has led to sharply higher insurance costs, with natural disasters becoming more frequent and severe, resulting in insurers paying out billions more in claims [4][5] - Rising costs of construction materials, auto parts, and labor have increased repair and replacement expenses, contributing to higher premiums [3] - Insurers are facing years of underwriting losses, leading them to raise rates or reduce coverage to satisfy shareholders and improve financial performance [3] Group 3: Reinsurance and Risk Management - The cost of reinsurance has also increased, further inflating insurance costs and disrupting the balance between risk and price [6] - Homeowners and drivers are now facing steep increases in premiums that are not necessarily correlated with their individual claim history or driving records [4]