UPDATED: Aug 23, 2013
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Changing weather conditions in the State of Minnesota is forcing insurance carriers to raise costs on homeowner insurance policies. Many of these increases are reported in the neighborhood of 10-12%, which is a very large increase for a single year.
Residents in Minnesota are becoming frustrated with their insurance companies, saying that these increases are not justified, just because they are having a bad weather year. Many consumers are concerned that the rates will not go back down once the weather returns back to normal patterns.
Insurance companies are claiming that the change in weather is more permanent and that the higher rates are needed to cover the extra damage. In addition, they claim that material costs have been going up for the past few years, so the cost of repair has increased as well.
Insurance firms are also changing the coverage allowed for some homeowners. For example, insurance companies usually offer replacement cost coverage for things like roofs, since a 20 year old roof is not worth that much. However, some homeowners are reporting they are only allowed to buy actual cash value policies, which means a damaged roof that needs to be replaced would not fully be paid for. Instead, the insurance company would pay up to the value of the roof at the time of the loss.