It’s news to no one that the costs of property insurance are escalating. According to a Bankrate analysis of rate data from Quadrant Information Services, the average homeowner’s insurance premium in February 2024 was about $141 a month for a home with $250,000 worth of dwelling insurance. This represents a 23 percent average increase from January 2023. That’s a big jump for a little over a year. 

The reasons for rising premiums are numerous. Part of it is something we can’t control: the weather. The country, like much of the world, is seeing an increase in the number and severity of storms such as hurricanes, floods, tornadoes, fires and other natural disasters. This has led to a strong spike in insurance claims.  

High inflation has played a role, as well. Higher construction costs mean that repairs are more expensive than just a few years ago, and labor costs have risen by double digits. In addition, as insurers’ profit margins have shrunk because of all the payouts, they are looking to recoup more money in the form of higher premiums. 

Do I Need Homeowner’s Insurance?

With homeowners’ insurance being more expensive, many homeowners are wondering if they can reduce or eliminate the amount they pay for premiums. This is an unwise decision, as it puts an individual’s most valuable asset – their home – at extreme risk. 

Homeowners insurance is vital because it protects homes and personal property. In the event of a total loss – something Americans are seeing more of nowadays – homeowner’s insurance becomes the primary source of rebuilding funds. Insurance also provides property owners with liability coverage in the event of legal actions from injuries or damage from another person on their property.

What Are the Benefits of Homeowner’s Insurance?

In the following section, we’ll discuss the many benefits homeowner’s insurance brings to individuals in more detail. 

Protection against natural disasters. In recent years, higher ocean and atmospheric temperatures have led to more intense storms that bring stronger winds and heavier rainfall. In addition, the frequency of rapid intensification events in which wind speeds increase very quickly has increased. This means that individuals in zones that were already prone to storms are at higher risk, and those in regions that were not considered high risk (such as Western North Carolina during Hurricane Helene) are finding themselves with more frequent and more extensive damage. 

Protection against theft. While home burglary rates have been on the decline, many homeowners are still at risk for them. With inflation still high, the costs of replacing stolen goods or repairing damage from a break-in are trending up. 

Protection against liability. If a homeowner is improperly insured, a claim from an individual injured on the property can be ruinous. A good homeowner’s policy will cover the homeowner in the event of lawsuits for bodily injury or property damage from anyone living in or visiting the property, and it can also pay for liability due to injury or damage caused by pets.

Consult with a Licensed Insurance Agent in Connecticut

A good insurance agent can help you “right size” your homeowner’s insurance to ensure you are covered in the event of an emergency but remain within your budget for premiums. 

It’s important for property owners in Connecticut to have a reliable insurance agent on their side. To be sure that your home insurance is properly insured for storm damage, theft, and liability, review your coverage in advance. 

In Connecticut, Petruzelo Insurance offers business, personal, and auto policies that fit your needs and protect you in the event of hurricane- or storm-related damage. Call us at 866-479-3327 or visit our website for more information.