As more consumers take advantage of record low interest rates by moving into new homes or making additions to their existing homes, the Insurance Information Institute (III) reports that rising construction costs and increasingly expensive natural disasters are expected to push the cost of homeowners' insurance up. According to the III, in 2002 alone home insurers paid out $3.5 billion more in losses and expenses than they received in premiums. In addition, losses in the homeowner insurance line over the past four years are estimated at $17 billion- approaching the level of insured property losses from the September 11 terrorist attack.

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