Why are your insurance rates increasing?
I want to give you a December 2023 insurance update. One of the questions I get about every day is why is my insurance rates going up so high?
One of the reasons is insurance companies buy reinsurance to insure themselves. From 1982 to 2018 there was an average of $7 billion weather occurrences going on each year. From 2018 to 2023 it averaged $20 Billion occurrences, and this year so far they’re already at 25. What that means is insurance companies use that data to figure their rates. They’re used to roughly $7 billion occurrences a year. And now as of this year, we’re at 25. So they underestimated the amount of losses that we’re going to have. So rates are going to go up.
It’s not fair, but it’s the way it is and it’s not going to get better, in my opinion. So call me if you have questions about your insurance, why your rates are going up, and I can explain a little more. But that’s one of the biggest reasons that rates are going up.
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