What’s happening with homeowners insurance rates in Nevada?
Homeowners insurance rates have been on the rise in Nevada, and they aren’t likely to go down this year.
A report from Insurance.com — a company that collects data on insurance policies — found that Nevada homeowners insurance rates rose by 7.5 percent in 2023 and have risen by 21 percent since 2018.
Increases on policies for homes greatly fluctuate based on a home’s characteristics and location, said Scott Menath, president of the Nevada Independent Insurance Agents trade association. He said he has seen rate increases be anywhere from 10 percent to 50 percent for average homes in the last year.
Areas in Nevada that are seen as having a higher risk of damages like Lake Tahoe and Mount Charleston have dramatic increases compared to urban areas of the state, Menath said. He said he has seen some Lake Tahoe home policies increase by 1,000 percent and said it’s “next to impossible” to insure property around Mount Charleston.
Menath said increases in homeowners insurance can be attributed to several factors including:
— Rising inflation which makes reconstruction costs for homes higher
— Supply issues in construction which make home repairs longer and more expensive
— More concerns from insurance companies about environmental risks like wildfires
— Higher reinsurance rates which are rates that one insurance company buys from another in case of a major claim
Overall, Nevada homeowners insurance is in a “hard market” which means there are fewer providers and more restrictive policies that lead to higher costs, Menath said.
The overall homeowners insurance market is unlikely to change much in 2024, Menath said, but he expects the market could soften and stabilize to more suitable levels in the last few months of the year.
Menath said there are also several ways to reduce insurance bills including:
— Raising a deductible level
— Improving a credit score
— Consult with an insurance expert about any policy and shop around different providers
— Make sure there aren’t any unnecessary items in a insurance policy
— Install anti-burglary devices
— Ensure fire suppression systems and water shut off valves are up to date
— Modfying a house to make it more resistant to damages or risks that can happen
Contact Sean Hemmersmeier at shemmersmeier@reviewjournal.com. Follow @seanhemmers34 on X.
