Premium costs rising
Over the past few years, the cost of premiums have risen dramatically. From 2003 to 2004, premiums for all categories of insurance rose at an annual rate of about 4.8% according to the Insurance Information Institute’s current edition of the Financial Services Fact Book.
Meanwhile, “multiple-peril” coverage or premiums which cover hurricanes, tornados, earthquakes, and other weather-related disasters increased 8.5% over the same period.
In 2006, homeowner’s premium costs rose another 6%. They were expected to rise another 4% in 2007. An estimate conducted of the average household’s allotted expenditure for the homeowner’s insurance concluded in 2006 was around $835.