200K Nevadans to see increase in homeowners insurance
Four insurers, including a major provider, are raising homeowners insurance rates in the coming months, affecting over 200,000 Nevadans.
State Farm, Nationwide Mutual Insurance, Homesite Indemnity Company and American Modern Property and Casualty Insurance are raising rates, with some starting as early as Friday, according to filings from the Nevada Division of Insurance. Additionally, five insurers raised their rates from January through April.
State Farm Fire and Casualty Company, with 214,157 policy holders affected in Nevada, was approved by the DOI to raise homeowners insurance rates by 9.94 percent. The rate change will go into effect May 15. Homesite Indemnity Company will raise rates April 25 by 19.97 percent. The company has 3,255 policy holders in the state.
Nationwide Mutual Insurance, with 3,212 policy holders in Nevada, will raise rates by 14.85 percent. The new policy will go into effect May 16. American Modern Property and Casualty Insurance was approved for a 31.59 percent rate increase for their owner-occupied home policy holders, affecting 4,038 Nevadans. The new policy will go into effect June 11.
Reason for rate changes
The DOI has said there are multiple reasons for the rate changes in Nevada, including rising real estate, repair and labor costs due to inflation and Nevada’s aging house stock requiring more maintenance as well as natural disasters.
“Real estate and home values have risen. Inflation, construction materials costs, and skilled labor availability are driving up the costs of rebuilding and repairing properties,” said a spokesperson from the DOI. “Nevada’s housing stock is aging, which means key home components — such as roofing, electrical systems, and plumbing — may require updates or maintenance.”
In January, Southern Nevada broke a record with the highest-ever recorded median house price at $485,000, according to Las Vegas Realtors. The valley is in a housing crisis as a lack of land to develop has coupled with high mortgage rates, a slowdown in building and increased construction and labor costs.
But Nevadans’ policies could be indirectly impacted by higher reinsurance costs, or insurance for insurers, and tighter underwriting standards.
“Nevada insurers relying on reinsurance may face higher costs in the future, which could lead to potential rate increases,” said a spokesperson from the DOI. “Increased claims and environmental risks could prompt insurers to adopt stricter underwriting standards, potentially making coverage less available or more expensive in high-risk areas.”
Additionally, the mere risk of a natural disaster may impact a rate change, with housing repairs costs on the rise, but the DOI ensures the data is only Nevada-based.
“Natural disasters are more costly now, and they are happening more often and in areas that, historically, have not been as frequently affected in the past,” said the DOI.
Previous rate changes
Travelers Property casualty Insurance was previously approved for a small rate increase of .007 percent for home insurance combinations, affecting 63,226 Nevadans. It went into effect Feb. 16. Spinnaker Insurance Company was approved for a 4.89 percent, affecting 7,136 Nevadans. It went into effect on March 16.
American Strategic Insurance was approved for a 6.8 percent rate increase on owner-occupied home policies, affecting 17,512 Nevadans. It went into effect April 9. MIC General Insurance was approved for a 23.96 percent rate increase, affecting 3,975 Nevadans. It went into effect April 14.
American Modern Property and Casualty Insurance was approved for a 14.86 percent rate increase on home insurance policies, affecting 10,745 Nevadans. It went into effect April 22.
Contact Emerson Drewes at edrewes@reviewjournal.com. Follow @EmersonDrewes on X.