Common home insurance prices enhance 27% after hearth – DSNews.com
A fire can be one of the worst days of a homeowner's life–Not only can it take years to recover emotionally from losing everything you own-IIt can be financially devastating, even after an insurance payout.
ValuePenguin, a data analytics company owned by Credit tree, found that the annual cost of home insurance increases in every state after a fire. In some states, the price doesn't go up by a meager amount–it explodes.
For the report, Andrew Hurst, an SEO marketing research analyst at ValuePenguin, analyzed 16 years of data from the US Fire Department and found that fires cause an average of $ 8.1 billion in damage per year, or a total of $ 138 billion from 2003 to 2019.
"Insurers pay some of the costs of fire damage on behalf of their policyholders, but those costs lead to higher prices," said Hurst. “ValuePenguin has calculated that the average cost of home insurance after a fire in a residential building increases by 27%. Depending on the federal state, the average rates can increase by up to 42% or only 6%. "
In four states, insurance costs increased by 4 after a fire0%: Mississippi rates rose 42% to an average of $ 2,236; West Virginia also rose 42% to $ 1,673; Idaho rose 41% to $ 1,486; and Oregon was up 40%, or $ 1,674.
The four states with the lowest rate increases were: Florida, where rates are increasingd by an average of just 6% to $ 2,094; Hawaii, up 11% to $ 1,210; Louisiana, up 15% to $ 2,022; and New York; 15% off $ 1,732.
One outlier is Colorado. It is the most expensive state to start a fire, but fire damage usually results in a lower premium than the rest of the country. After a fire damage claim, Colorado residents will typically see a 21% increase in price and expect to pay an average of $ 4,097 for insurance.
Hurst also asked the question "Do homeowners need special fire insurance?" what the answer depends on where you are.
“You might consider taking out standalone fire insurancece instead of traditional home insurance to insure property that is older or has a history of damage to reduce high insurance costs. Or you can add it to a second home or vacation rental, which is sometimes difficult to insure, ”the report said. “You could also consider adding home fire insurance to supplement your existing homeowner protection. This could be because you live in an area prone to forest fires or you have simply suffered fire damage in the past and want extra security. "
According to the available data, most house fires are caused directly by humans, mainly cooking.
“The data shows that cooking fires, stoves, stoves and other fixed sources Heat was responsible for an average of 46% of annual fires between 2003 and 2019. In addition, cooking springs were the cause of at least half of the residential fires between 2014 and 2019, with a peak of 52% in 2017. ”
A full copy of the report can be found here.