Why Are Home Insurance Rates Increasing?

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    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    In California home insurance rates do not appear to be increasing.  The reason that insurance rates increase is that claims and expenses are higher than premium income.  At that point the insurance company petitions the insurance commissioner for a rate increase.  In some states that is a laborious process as the commissioner is obliged to protect the interests of the citizens.  Once the commissioner approves a rate change, the homeowner’s rate increases or decreases.
    Answered on May 20, 2014
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