Risk mitigation is no longer nice to have but the foundation for a strong insurance coverage. (Credit: Drobot Dean via Adobe Stock)
Homeowners should expect a 6% increase in their insurance rates during 2024 renewals — and that's if they're lucky. This comes on the heels of the average annual rate increase by 19.8% between 2021 and 2023, influenced by inflation and the climbing frequency of extreme weather catastrophes — dozens of billion-dollar weather and climate disasters took place during this time period. Some of the largest U.S. insurance companies have even stopped writing coverages in high-risk geographical areas.
Risk mitigation measures such as smoke detectors and security systems that used to earn homeowners small discounts on coverage rates are now prerequisites for eligibility. Risk mitigation is no longer nice to have but the foundation for a strong coverage application.
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