According to a report by the Wall Street Journal, Illinois, along with Texas, Arizona, North Carolina, Oregon, and Utah, has experienced a notable increase of between 20 to 30 percent in homeowners insurance premiums since the onset of 2022.
Homeowners insurance premiums in Illinois have witnessed a staggering surge, setting the state apart from others grappling with escalating property insurance costs
As disclosed by Lauren Menuey, Managing Director of Goosehead Insurance, no state has been untouched by this trend, with 31 states recording double-digit rate hikes in the past year. “We’re witnessing a shift towards shifting more risk onto the homeowner, stringent underwriting policies, and substantial rate hikes,” Menuey conveyed.
While Illinois doesn’t face natural disasters as frequently as states like California and Texas, tornadoes remain a potential threat. However, these weather-related incidents primarily occur in sparsely populated areas, thus capping claims costs for insurers, as reported by Crain.
Unlike numerous states, Illinois lacks a prerequisite for pre-approval of rate adjustments and lacks a regulatory mechanism for contesting homeowners insurance premiums rate escalations, resulting in one of the most lenient homeowners insurance premiums rate regulation frameworks in the nation.
Concerns are growing among industry experts that insurers might be exploiting this regulatory leniency to institute rate hikes surpassing what’s deemed necessary
In 2022, the leading five homeowners insurance premiums companies in Illinois commanded a substantial 67 percent market share. Major insurers in the state have significantly raised premiums, with Allstate increasing rates by nearly 23 percent this year, while Farmers Insurance, another prominent player, implemented a 25.4 percent hike since December 2021.
Leave a Reply