(The Center Square) – An insurance research company says Illinois is becoming increasingly vulnerable to a growing insurance crisis.
Insurify says Americans have seen premiums climb to unsustainable heights, and Illinois is one of 15 states where insurance storm clouds are appearing on the horizon. The company said homeowners are facing rising costs and shrinking coverage options, which put their financial stability at risk.
“When we look at Illinois we see a little bit of both happening,” said data insights manager Chase Gardner. “It is not to the extreme that we’ve seen in some major states, but if trends continue, it could definitely get into some more serious territory.”
Gardner notes that Illinois insurers have already pulled back, with Pekin Insurance pausing new policy writing and SECURA Insurance dropping policyholders, which is an early sign the Illinois insurance market is hardening.
The report shows that Illinois experienced a significant rise in claim-related expenses for insurers in 2023, largely due to the frequency of severe weather events and increased restoration costs.
Insurify’s data science team projects the average annual home insurance premium in Illinois will hit $2,245 by the end of 2024, a 10% increase from 2023. The company projects Illinois car insurance premiums will rise by 31% by the end of 2024, bringing average annual costs to $2,181.
Other Midwestern states making Insurify’s insurance crisis list include Iowa, Missouri, Minnesota and Michigan.
Although the state didn’t make the list, Florida’s insurance debacle is making front page news. Since 1980, the U.S. has been impacted by 378 weather events that have caused financial damage of at least $1 billion. As a result, some Florida homeowners pay some of the highest insurance premiums in the country.
“It’s about $34 billion of bad,” broker Ryan Serhant tldo Fox News. “It’s one of the greatest insurance crises that we’ll see, I think, in a very, very long time.”
