Homeowners Insurance Hikes Will Affect Chicago Real Estate

November 15, 2012

chicago real estate home insuranceMany Chicago real estate owners will have to get used to paying a little more for homeowners insurance. State Farm Insurance has decided to hike insurance rates 4.7 percent. The rates will go into effect on January 1. Since State Farm insures one out of every three homes in Illinois, many Chicago-area residents will be affected.

This is the third time State Farm has increased homeowner insurance prices in the past four years. In 2010, homeowner insurance rates increased 5.3 percent, and in 2009 they increased 13 percent.

So, what’s the reason behind all of the insurance hikes? Insurers have been charging more to insure homes due to an increase in damage from storms. In states such as Illinois, tornadoes and hailstorms are often the culprit behind costly home damages.

Allstate Corp., which is located in Northbrook and is the state’s second-largest insurance provider, is also hiking their rates. Allstate customers can expect to see their homeowner insurance rates increase anywhere from 4 to 10 percent. Similar to State Farm, Allstate has been increasing their rates in the past three years.

Due to recent natural disasters such as Hurricane Sandy, now may be a good time to renew your homeowners insurance policy and to think about different insurance coverage options.

Will you be affected by the insurance rate increase?

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