A “perfect storm” is causing insurance premiums to go up.
That's the assessment of North Dakota Insurance Commissioner Jon Godfread.
"North Dakota isn't immune from inflationary pressures that we're seeing across the country and across the globe," Godfread said. "The cost of goods used to replace roofs, and the cost of labor, has gone up by a significant amount."
Godfread said homeowners’ insurance, for example, is normally on an annual renewal. And he said insurance companies will try to make up what they lost in that period, because of rising costs.
"A lot of the property and casualty carriers across the country report that on average, for every $1 they collect in premiums, they're paying out $1.12 in claims," Godfread said. He said some of the larger carriers have reported up to $6 billion in losses nationwide, because of claims.
"That will get turned around and reflected in their rates," Godfread said. "They've got to be able to do business."
Godfread said in other states – especially coastal states – some companies are no longer writing policies, causing an availability crisis. He said that isn't the case here in North Dakota. And Godfread said it is a good time for people to shop around for insurance.
"That's not to say you're walking away from your agent, because you don't like him," Godfread said. "But you need to do what's right for your family, and your own economic future."
