Why are Insurance Rates Increasing?

2012 was one of the worst years ever for insurance companies. Hurricanes, Tornados, and large hail storms destroyed thousands of homes throughout the country and even though most of the damage did not occur in Richmond, homeowners should expect rate increases and stricter underwriting. Reinsurance premiums, reduced new business writing and low investment returns are all pressuring insurance companies to increase rates. Homeowners should expect rate increases of between 5 – 10% for the several years.