1. 225 POINTS
    Ben Guttman
    Sales Manager, Midtown Insurance Group, Baltimore,MD
    Natural disasters such as Sandy definitely play a role. Additionally, the cost to replace homes is rising because labor and materials are more expensive. One way to lower your premium may be to take a higher deductible if you can afford it. This still protects you from a major loss, but helps the insurance company by deterring "maintenance claims."
    Answered on April 23, 2014
  2. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    While most states have noticed an increase in property premiums this past year, some have not.  California has experienced a decrease.  The simple answer is that the insurance premium reflects losses that the companies incur.  If the company collects $100 and pays out $101 they will lose money and in a few similar years, cease to operate.  The companies file with the individual state commissioners and have to show their gross premiums, expenses and claims in that state.  With that information the commissioner may allow them to adjust their rates.  The insurance commissioner is also very interested in the company remaining viable so that it can meet future claims
    Answered on April 23, 2014
  3. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    Great question! Insurance rates go up for several reasons. The main one is due to the payouts they've had to make - years like these past few with several violently destructive tornado's and Hurricanes cause huge payouts on claims. The more they pay out, the more they need to take in. Other, more common reasons are the same rising costs of living that we face - it's more expensive for gas, supplies, wages, etc., so the prices go up to compensate. Thanks for asking!
    Answered on April 25, 2014
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