If Us Inflation Reflected Rising Home Insurance Costs, Itd Be Even Higher
Homeowners insurance costs in the U.S. hit roughly $175 billion in 2023, up 21% over the previous year, according to insurance brokerage Policygenius.
Silicon Valley 7:22 pm on April 10, 2024
The article discusses how not including homeowners insurance in the U.S. Consumer Price Index (CPI) measurement of inflation could be leading to an underestimation of actual inflation rates, especially given the significant increase in home insurance costs due to climate change and extreme weather events. An analysis from Bloomberg Intelligence found that if home insurance costs were included in CPI with the same weight as tenants and household insurance, it could have added approximately 0.8 percentage points to last year's inflation increase of 3.4%.
- The cost of homeowners insurance in the U.S. reached roughly $175 billion in 2022, up significantly from previous years.
- Climate change and extreme weather events are major contributing factors to the increase in home insurance costs.
- An analysis from Bloomberg Intelligence found that if home insurance costs were included in CPI with the same weight as tenants and household insurance, it could have added approximately 0.8 percentage points to last year's inflation increase of 3.4%.
- Average premiums for U.S. homeowners insurance are predicted to hit a potential record of $552 by the end of 2023.
- Factors contributing to the expected increase in homeowners insurance costs include intensifying weather disasters, rising reinsurance rates, and high home repair fees.
https://www.siliconvalley.com/2024/04/10/if-us-inflation-reflected-rising-home-insurance-costs-itd-be-even-higher/