The cost of home insurance in Chicago is expected to rise for the third consecutive year, according to the Insurance Information Institute. Premiums are estimated to raise an average of 2-3% with coastal areas experiencing higher increases. Hurricanes are less of a concern as damages have been minimal in recent years. The increased loss from rain and winter storms, however, is playing a major role in hiking homeowner's coverage.
The institute claims that when the fiscal year of 2010 comes to a close, the average premiums for home insurance will have raised by 1%, or $807.
The Consumer Federation of America has issues the "Buyer's Guide to Insurance," available for free through its website, in light of the news. Other state regulators have published consumer guides to help consumers make the informed decisions when seeking to make changes to their coverage.
Regulators are encouraging policyholders to shop around. There are a number of agencies throughout the state that offer "find and agent" tools that connect consumers with both independent and exclusive insurance agents. People are also being encouraged to ask their insurers questions should they be concerned with rising rates and how it will affect them specifically.
The Allstate Corp. reported that its average premiums for home insurance policies in Chicago rose by 7.1% in 2010. Chief Executive of Allstate says that policyholders should "expect to see it go up again" this year as well.
The Illinois Department of Insurance has listed the contact information of six rating agencies, who routinely evaluate the credibility of insurers, on their website in order to provide shoppers with another tool to protect themselves from dangerous "too-good-to-be-true" policies.
No comments:
Post a Comment