Rising Home Insurance Costs Spur Shopping Surge

Homeowners and renters are facing significant increases in insurance costs, surpassing inflation and auto insurance rate hikes, according to the J.D. Power 2024 U.S. Home Insurance Study. The average shopping rate for home insurance hit a record 6.8%, driven by dissatisfaction with rising premiums, as 37% of consumers experiencing rate increases are likely to seek new policies. Despite this, only 2.2% have actually switched insurers, highlighting a lack of options in the market. In Illinois, homeowners have seen premiums rise by 42% since January 2023 due to inflation and increased costs related to weather-related damages. Additionally, homeowners in wildfire-prone areas report being dropped or facing hikes in their insurance, raising concerns about ethical practices in the industry. Effective communication from insurers about rate increases could help improve customer retention and satisfaction.