In brief: Homeowner's insurance rates are starting to rise after record claims in 2011 hurt insurer's balance sheets.
The full story
Storms along the East Coast, tornadoes in the Southwest, and earthquakes around the world have taken a toll on insurance company finances, says Bob Skow, CEO of the Independent Insurance Agents of Iowa.
The Insurance Information Institute agrees and says that rates are likely to rise with renewals throughout 2012. Customers are starting to feel the cost of years of heavy losses to insurance companies and carriers.
The III reports four straight years of record losses for insurance companies internationally and estimates premium rises from 4 to 5% this year.
In 2009, the average homeowner's premium was about $799 and 2011 average will likely be about $840.
Summing up
Insurance losses in the U.S. in the first half of 2011 were $17.8 billion compared to the $13.6 billion paid in all of 2010.
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