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Member, Beacon International Group, Ltd.
Personal lines property/casualty insurance rates rose an average of 3% in December 2013 over those of the same month a year earlier, Dallas-based electronic insurance exchange MarketScout reported late Monday.
Houses valued at more than $1 million experienced the greatest increase at 5%, while those valued under $1 million were assessed 3% increases, the same percentage increase as personal articles accounts. Personal automobile policies experienced the smallest increases at 2%.
“Over the course of the last four years, rates for high valued homeowners were comparatively low because of aggressive pricing from some of the newer high net worth insurers,” said MarketScout CEO Richard Kerr in a statement.
“As a result of the aggressive pricing, the market as a whole responded with lower rates,” he said. “In the last year and a half, high-net-worth insurers have been raising rates to more appropriately price for the broader coverage provided. Thus far, insureds are willing to pay the increases. As a result, pricing is going up for homes valued over $1 million, especially in catastrophe prone areas.”