How to deal with a home insurance rate hike [Video]

AUSTIN, Texas — Homeowners nationwide are facing a crisis: skyrocketing insurance premiums or outright policy non-renewals, even in areas traditionally considered low risk. Consumer Reports explains why this happens and what to do if your homeowner’s premium goes through the roof.

A recent Consumer Reports survey found that 83 percent of long-term policyholders have seen their rates increase over the last five years. When this happens, homeowners may be forced to make trade-offs like buying substantially reduced coverage or sometimes going without coverage.

Insurance industry experts point to several factors driving these changes. Building costs are through the roof—up 40 percent over the last four years. Mother Nature isn’t helping either. Last year alone, weather disasters cost insurance companies 93 billion dollars.

There’s no place to hide. You will still feel this in your wallet …