Residential Real Estate Property Insurance 2022 Outlook – A Broker’s Perspective

The residential real estate insurance market has been impacted by global events, such as the pandemic, extreme weather events, and a hard market cycle. The pandemic led to the introduction of communicable disease exclusions in policies. Extreme weather events caused significant damage and insurable losses, leading to rate and deductible increases. The hard market cycle resulted from low investment returns and economic uncertainty, leading insurers to raise rates and improve operations for profitability. In 2022, factors affecting insurance premiums include inflation, location's risk of catastrophe events, construction type, claims history, and maintenance. Working with a broker can help reduce premiums by finding competitive quotes and coverage solutions.