As the cost of home insurance continues to rise, many homeowners in the United States are seeing an increase in their home insurance claim settlements. According to a report from the Insurance Information Institute (III), the average home insurance claim settlement in the US increased by 5.3 percent in 2019, with the average home insurance claim now settling for nearly $9,000.
The increase in home insurance claim settlements is due to a number of factors, including an increase in the cost of repairs and replacement of damaged property. According to the III report, the cost of repairs and replacement of damaged property has increased by more than 12 percent since 2016. This is due in part to the rising cost of materials, labor, and other costs associated with repairing and replacing damaged property.
In addition, the number of natural disasters in the US has increased in recent years, leading to an increase in the number of home insurance claims. According to the III report, the number of natural disasters in the US increased by more than 10 percent in 2019, with the total number of natural disasters reaching a record high of 16.
The increase in home insurance claim settlements is also due to an increase in the number of home insurance policies. According to the III report, the number of home insurance policies in the US increased by more than 5 percent in 2019, with the total number of home insurance policies now exceeding 45 million.
Finally, the increase in home insurance claim settlements is also due to an increase in the amount of coverage offered by home insurance policies. According to the III report, the average amount of coverage offered by home insurance policies increased by more than 6 percent in 2019, with the average home insurance policy now offering more than $200,000 in coverage.
As the cost of home insurance continues to rise, it is important for homeowners to do their research and make sure they are getting the best coverage for their needs. By understanding the factors that are driving the increase in home insurance claim settlements, homeowners can make sure they are getting the coverage they need at a price they can afford.