Homeowners rates adjusted the most with homes under $1,000,000 in coverage A value being assessed with a rate increase of 3 percent in first quarter 2020 as compared to 4.25 percent in the fourth quarter of 2019. For larger homes over $1,000,000 in coverage A value, the increase was down a full two percent from plus 6.25 percent to plus 4.25 percent.
“We do anticipate continued rate increases in the non-admitted market, particularly in California and Florida,” said Richard Kerr, CEO of MarketScout. “Many secondary and vacation homes are placed in the non-admitted market. The rates for these homes will be under even more pressure because of insurers’ concern insureds may not be maintaining the property in the midst of the COVID-19 crisis.”
The National Alliance for Insurance Education and Research conducted pricing surveys used in MarketScout's analysis of market conditions. These surveys help to further corroborate MarketScout's actual findings, mathematically driven by new and renewal placements across the United States.A summary of the first quarter 2020 personal lines rates is set forth below.
|Homeowners under $1,000,000 value||Up 3%|
|Homeowners over $1,000,000 value||Up 4.25%|
|Personal Articles||Up 3%|