MINNEAPOLIS - Damage from recent storms is likely to cause insurance premiums to rise even further.
Since 1997, premiums have more than doubled in Minnesota. The average home insurance premium in Minnesota climbed from $368 in 1997 to $981 in 2010.
"We used to be a pretty cheap state," says Mark Kulda with the Insurance Federation of Minnesota. "Now we're 14th in the nation. We're well above the national average and trending higher."
So what's the reason?
Kulda says Minnesota storms have gotten more frequent and destructive since the late 90's, homes have become more expensive to repair, and there has been a rise in what he calls 'storm chasers'. Those are people who come to your home unsolicited and offer to fix the damage, sometimes for an inflated amount.
"The problem for the insurance industry is we are obligated to repair the home to its pre-storm condition and if that means you're going to go with a contractor who is a storm chaser who charges three times what the locals charge, we end up having to pay that, which means you end up paying that in premiums."
Kulda sees little relief in the immediate future.
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