Many homeowners are experiencing sticker shock when they receive their home insurance policy renewal bills. According to the Insurance Information Institute, home insurance premiums are up, on average, four percent on an annual basis. This is due primarily to rising material costs and climate change making it more costly for insurance companies to keep their clients covered.
Premium rates are up 11.4 percent since 2017 and even higher in some areas prone to natural disasters. Tornadoes, hurricanes, wildfires and severe storms led to more than $82 billion in personal property damage in 2021. Rebuilding these homes is taking longer and costing more, according to the National Association of Home Builders. Supply constraints and rising material costs in ravaged areas often remain elevated for months after a disaster.
Today, conforming no-point 30-year fixed mortgage rates are averaging 3.0 percent and 15-year rates are near 2.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.