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Homeowners insurance rates in Virginia still remain below the national average but have been significantly affected by the high market volatility that the industry is experiencing. For instance, there has been a surge in the cost of premiums in recent years. Lately, average insurance rates in Virginia and nationwide have increased yearly, rising 9% in 2023. In 2021 and 2022, the rates rose by 5-6%, a stark contrast to the typical 2-4% increase in previous years.
Rising inflation and numerous catastrophes are major drivers of the cost spikes. These are a few of the many trends that will likely continue as carriers adapt to the increasing costs of home repairs and reconstruction.
Homeowners insurance trends that will carry on from 2023
Notable trends from 2023 that will likely be relevant in 2024 include the rising number of claims that have caused many insurers to revise premiums to cover the cost of losses and the increased costs of insuring homeowners.
Here are some key trends to watch out for:
1. Rate shopping
Rates vary from one carrier to another. Insurers calculate premiums based on factors such as property location, deductibles, claims history, and home safety features. Independent insurance agents come in handy when rate shopping, as they can compare coverage and rate options from many different companies.
As the premium costs escalate and carriers impose more restrictions on new business and renewals, homeowners have been shopping around to find the most affordable rates. This trend will continue in 2024 even as carriers tighten the requirements for obtaining new insurance.
2. Increased premiums
Premium increases have hit a record high in 2023 due to rising inflation. This has been aggravated by the growing number of catastrophes from storms, floods, and wildfires as more people move into disaster-prone areas.
Many carriers have been forced to revise their premiums to cover future losses. With Virginia's susceptibility to costly weather events, including flooding, tornadoes, hurricanes, droughts, and wildfires, Virginia insurance companies are charging more for coverage.
With increased claims due to the many disasters in recent years, many insurers have struggled to keep up with the rate of claims. Insurance is regulated to ensure carriers fulfill their promises to consumers, so companies seeking to adjust premiums or change coverage terms must generally request approval from the state Bureau of Insurance.
A few ways providers have been tightening home insurance qualifications include requiring that homeowners perform maintenance of their houses, requiring that customers bundle multiple policies, including car insurance, and limiting coverages in high-risk locations.
Tips to get the best rates in Virginia
Despite the rising cost of home insurance, there are strategies you can use to qualify and save money. Many factors affect Virginia homeowners insurance rates, but here are a few tips to help you secure the best deals.
- Maintain your home
- Annually have your home’s roof inspected and replace it when necessary
- Install safety equipment (deadbolt locks, smoke detectors, and security systems)
- Upgrade outdated appliances (plumbing and electrical)
- Increase your deductible
- Improve your credit
- Bundle your coverages to receive discounts
Secure your future
As the homeowners' insurance landscape changes, trends such as higher premiums and stricter qualifications will define insurance underwriting in 2024 and beyond. Whether you're shopping for insurance for a new home or want to renew your existing policy, we hope you feel more prepared for what the market holds this coming year.
THE NORTHERN NECK INSURANCE INTEGRITY PROMISE — We pledge to provide straight talk and good counsel from our NNINS Virginia insurance experts through our blog. While we hope you find this to be a helpful source of information, it does not replace the guidance of a licensed insurance professional, nor does it modify the terms of your Northern Neck Insurance policy in any way. All insurance products are governed by the terms in the applicable insurance policy.
