“Rates for homes are up in alllocations; however, Florida and California are getting hit thehardest,” Richard Kerr, CEO of MarketScout, said in a statement.(Credit: studioarz/Shutterstock)
The composite rate for U.S. personal lines was up 3.5% in thesecond quarter of 2019, an increase of 2% in the first quarter,according to MarketScout. Rates in some catastrophe areas are up asmuch as 50%.
|A summary of 2019's second quarter personal lines rates is setforth below:
|Personal lines
- Homeowners under $1,000,000 value: up 3.5%
- Homeowners over $1,000,000 value: up 3.5%
- Automobile: up 3.5%
- Personal articles: up 2.5%
“Rates for homes are up in all locations; however, Florida andCalifornia are getting hit the hardest. Large admitted markets arecutting back in Florida, resulting in more business going to themore expensive non-admitted markets. In California, most insurersare running from new business and remain fearful of another torturous wildfire season,”Richard Kerr, CEO of MarketScout, said in a statement.
|“Some homeowners are being assessed 50% rate increases alongwith much larger deductibles. Only three months ago, these rateincreases were around 20-25%, so the trend is up. This upwardtrajectory is likely to continue for the rest of the year,especially with the Fourth of July earthquake reminding underwriters [that] quake exposure isvery real,” added Kerr.
|Related: Global commercial insurance prices rise duringfirst quarter of 2019
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