HARRISONBURG -- Homeowners insurance rates are increasing almost double the rate of inflation nationwide, up 36% from 2003-2010 mainly because of recent severe weather.
Most people don't realize that flood damage is not covered in homeowners' insurance. You have to take out a separate policy, which is nationally regulated with rates quickly increasing.
Katherine Dimitrio and her husband Bill received a surprise no one wants to get. All three houses on their street experienced major flooding.
"We ran down to the basement and we had water up three feet or so. Just standing still. The sub pump was working like crazy but the water just kept coming in," Dimitrio recalls.
The couple didn't file a claim, and only had homeowners insurance. As for flood insurance, "I thought about it after this happened. But, i went to look at some maps, topographic maps and we're not in a flood plain," says Dimitrio.
LD&B Insurance agent Troy Suter says even places not at risk are still being affected. Insurance companies are losing money paying more and more in losses and expenses.
"We are seeing some of these increases. Our homeowners rate increases are generally around the 5 to 12 percent increase," Suter says about the Valley.
Rates here are nothing like the national average, and somewhat under control based on risk assessments. Flood insurance is out of local insurance companies control.
"The national flood insurance program is government regulated. Those are increasing much more dramatically. Those are going up about 25 percent. That's what people should be expecting, if not more in some instances," says Suter.
The Dimitrios, having already experienced one of those instances, flood insurance was financially more than they could handle.
"It's actually pretty expensive to do, so it's just not worth it. We'll just have to take the risk again," Dimitrio admits.
The couple is willing to risk paying everything out of pocket, again. Dimitrio remembers, "all in all I'd say we lost about 2,000 dollars and a week of my life."
Suter says some companies, even in Virginia, are cancelling or not renewing policies because of the trouble with the current market, but Virginia is still a good state for insurance compared to some others.
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