Home insurers’ latest trick: stealth increasing your deductible

Shifting Ground in Home Insurance Policies

Recent developments in the home insurance market are raising eyebrows and concerns among millions of policyholders in the U.S. Major companies like Progressive, State Farm, and Travelers are reportedly tightening their policy terms, which could affect how much homeowners end up paying out of pocket.

What’s Changing?

One of the notable shifts is the increase in deductibles—the amount policyholders must pay before insurance kicks in. This change often goes unnoticed until a claim is made, leading some homeowners to feel blindsided. The increased deductibles are being billed as a way for insurers to manage rising costs, but they also mean that customers may find themselves responsible for more expenses when making claims.

Which Homeowners are Affected?

As these policy updates roll out, they are likely impacting a broad spectrum of homeowners, particularly those who live in regions prone to natural disasters or high-risk areas. The changes may not affect everyone equally, but the potential for increased out-of-pocket costs is a concern for many.

What This Means for the Insurance Market

These adjustments reflect a trend where insurance companies are attempting to stabilize their finances amid fluctuating market conditions and rising claims. While this might help companies manage risks, it also places a heavier burden on consumers—especially those who are already feeling the pinch from inflation and other economic pressures.

A Final Note

As these trends develop in the insurance sector, it’s crucial for homeowners to stay informed about their policies and understand the implications of any changes in terms and conditions. Being proactive and seeking clarification from insurers could be beneficial in managing future risks.

Original Source: https://www.ft.com/content/1e3d4c2a-e58b-4813-8a6d-42b5ff4f12c1