May 17, 2012 5:40 am
The RateReport shows that 12-month home insurance premiums in December 2011 were $810 nationwide, a 19 percent increase from January 2011 at $682. RateReport shows that on a nationwide basis, homeowners are paying, on average, $128 more per year for new homeowners insurance policies than they were at the beginning of the year.
State-by-state premium increases were more dramatic in some areas including Mississippi, Montana and New Mexico where new policies in December 2011 were carrying roughly 29-39 percent higher premiums than those sold in January 2011.
"Rate fluctuations are normal and can be caused by a variety of factors," says Carlos Lagomarsino Founder of HomeInsurance.com. "The best thing homeowners can do is comparison shop and ask their agents to qualify them for all eligible discounts, such as a home-auto package, which can provide substantial savings."
With the overwhelming increases in 2011, there were some bright spots where policyholders saw lower rates toward the end of 2011 such as Washington D.C., where homeowners were paying about 7 percent less for new policies. Likewise, new policies sold in December 2011 in Vermont, Virginia, West Virginia and California decreased in price as compared to earlier in the year when they were 1 to 3 percent higher.
Published with permission from RISMedia.