NEW YORK – Homeowners can look forward to the smallest increase in homeowners insurance in five years. According to the Insurance Information Institute the cost of insuring homes is expected to rise by only 2.8% in 2004. “Small decreases in the frequency and cost of claims have helped improve insurer financial performance, resulting in a significant moderation in the cost of homeowners insurance in 2004,” said I.I.I. Senior Vice President/Chief Economist Robert Hartwig. “With the cost of owning a home in America skyrocketing – sale prices, local property and school taxes, energy costs and, now, interests rates on the rise, the moderation in home insurance costs couldn’t come at a better time.” The projected increase represents a substantial slowdown from 2003 when homeowners insurance costs rose by an estimated 7.4%. Losses are the most important driver of homeowners insurance premiums. Between 2000 and 2002 alone, homeowners insurers paid out an estimated $13.5 billion more in claims than collected in premiums, rivaling the $15.5 billion in insured losses from Hurricane Andrew-still the most expensive natural disaster in U.S. history in terms of insured losses. By 2003 results had improved substantially, with insurers paying out an estimated $1.03 for every dollar earned. According to I.I.I. although a home remains the most valuable asset most people will ever own, some 64% of all homes in America are underinsured by an average of 27%.

Complete your profile to continue reading and get FREE access to, part of your ALM digital membership.

Your access to unlimited content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including and

Already have an account?


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.