Will Colorado Home Insurance rates go down in 2011?

Will insurance rates go down in 2011 for homeowners? As we all know in the past year, insurance rates have gone up. Some companies rates did stay flat, but big names such as Met Life Auto & Home and Travelers. had to take increases lately. I know a lot of other companies just beside those, who had to take increases. Such companies that include mayhem, and your good neighbors. So lets ask ourselves. Why did first of all did they go up, and when will they go down?

First of all,  lets go back to the fact that insurance companies invest a lot of money in premiums they receive. Even though we have had a bull now lately in the stock market right it seems, companies lost a lot of money in the 08 crash. They are trying to play catch up. Also with the market right under 12k, and still a lot of uncertainty in the economy, its still not worth writing to home about.

Second, insurance companies have experienced a lot of  claims in Colorado lately. When recessions hit, fraud goes up, and either way its going to cost the company. In July 2009 a mild hail storm rolled through Denver and area's nearby. It was labled a catastrophe, and cost Colorado insurer's nearly 768 million dollars in loss. The biggest in the States history for one storm. A total of 1.4 billion was paid out in 2009. So overall in the past couple of years property insurer's have gotten beat up.

Lets not also forget how many more homes and have already been lost in the housing crisis. With homeowners falling off the balance sheet due to foreclosure, the worse off it is for the insurer. The more people you have the in the pool, the better off the insurance company is. Even in my opinion, foreclosure's will continue to be a nightmare for property insurance companies.

My forecast is property insurance rates might continue to go up a little bit more. I am hoping to see a curtail at the end of the year depending upon unemployment, housing and where the stock market goes. Lets hope we see a drop, latest beginning of next year.