If you’re up for renewal on your homeowners insurance policy this year, brace yourself: the landscape is shifting. Across the U.S., premiums are rising, coverage terms are tightening, and replacement costs are squeezing both insurers and homeowners alike.
At Petruzelo Insurance, we believe in keeping you ahead of the curve.
Here’s what’s going on — and what you can do about it.
Why Rates Are Increasing
- Inflation & Rising Construction Costs
Building materials — lumber, roofing supplies, metals — plus labor, have seen steep price increases. These rising costs make claims more expensive to settle. If it costs more to rebuild or repair, insurers adjust premiums accordingly. - Severe Weather & Climate Risk
From wildfires to hurricanes to increasingly severe storms and hail, climate-related losses are mounting. Insurers in regions with high weather risk are facing more frequent and larger payouts. That risk is reflected in higher premiums and sometimes higher deductibles or stricter policy terms. - Reinsurance Costs Rising
Insurance companies themselves often purchase insurance (reinsurance) to cover extreme losses. As reinsurance becomes more expensive, those added costs tend to flow downstream to policyholders. - Regulatory Pressure & Availability Constraints
In some states, regulators are approving emergency or substantial rate hikes to allow insurers to stay solvent, especially after big loss years. Also, some insurers are pulling back from high-risk areas, which can reduce competition and drive up rates in those zones. In 2023, about 14,400 homeowners in Connecticut received nonrenewal notices for their property insurance — up 45% from the year before. These nonrenewals aren’t just along the coast; inland counties like Litchfield have also seen sharp increases.
What You’ll Likely See at Renewal
- Higher Premiums: Many homeowners will receive renewal notices showing increases. Nationwide projections suggest annual premium hikes of 8-11% for many areas; in high-risk states, much more.
- Increased Deductibles: To keep premiums from skyrocketing further, insurers are asking policyholders to bear more of the initial cost of a claim. Expect higher out-of-pocket deductibles, especially for things like roof or wind/hail damage.
- Reduced or Modified Coverage: Some policies may shift away from full replacement cost (RCV) toward actual cash value (ACV), especially for things that depreciate (roof, siding, etc.). This means you may get less in a claim if your materials are old or worn.
- Stricter Eligibility in High-Risk Zones: If your home is in a wildfire, flood, hurricane, or hail-prone area, you may see nonrenewals, steeper increases, or limited available carriers. Insurers may also impose stricter building standards or safety requirements.
What You Can Do to Prepare & Save
- Review your policy well before renewal: Don’t wait until the last minute. Understand what’s changing, what options you have, and whether you can adjust coverage.
- Maintain your property: A well-maintained roof, updated wiring, impact-resistant windows, etc., all help reduce risk and can make you more attractive to insurers.
- Raise your deductible (if feasible): A higher deductible lowers premiums, though you’ll need to have enough savings to cover it if you do need to make a claim.
- Leverage an Independent Agent: Rates can vary widely from insurer to insurer—and even from one ZIP code to another. Independent agents at Petruzelo shop the market for you, comparing multiple carriers to find a plan that aligns with your coverage needs and budget.
- Stay informed about local rules: Some states are changing regulations or have special plans (like FAIR plans or residual market options) for homes in high-risk zones. These can be tools if you’re having trouble finding coverage.
At Petruzelo Insurance, our goal is to help you navigate these changes without surprises. If your renewal is coming up, reach out — we’ll review your coverage options, explain the trade-offs, and work to find you the best combination of protection and value.