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The Impact of Inflation: Why Insurance Premiums are Going Up

By September 5, 2022September 29th, 2022Insurance
It’s not just you. Just like interest rates, insurance premiums are rising across the board due to inflation.
According to the U.S. Bureau of Labor Statistics, inflation recently hit 9.1%, the highest in 40 years. Consumers and businesses feel the impact as prices soar for just about everything. And as inflation increases, so does the cost of labor and materials like lumber, roofing, and auto parts, and yes, even insurance claims costs. As a result, insurance companies raise rates to cover these higher costs, resulting in higher homeowners and auto premiums.
Insurance is designed to protect you financially if you and your family face a severe loss. We urge you not to lower your amount of coverage as we weather this storm, and are happy to review your options as your insurance policies renew.