Part 6/11:
In Illinois, severe weather like the deadly flooding during the Fourth of July weekend— which claimed at least 119 lives—has underscored the escalating risk. State Farm reports that over the past 15 years, their catastrophe provision has proven inadequate, with loss years exceeding their reserves in 13 of those years. This pattern suggests that the current insurance pricing models may be insufficient to cover the rising costs, forcing companies to hike premiums sharply.
Similarly, Allstate recently increased homeowners insurance premiums in Illinois by 14.3%, reflecting a broader industry trend of passing on disaster-related costs to consumers. These significant hikes threaten to make insurance unaffordable for many middle- and lower-income households already battling economic pressures.