Barron's on Home Insurance in CPI & PCE IndexCPI includes housing via OERs (owners' equivalent rent) & that doesn't include home insurance premiums (paid by the owner of the property). Fed's favorite PCE index includes home insurance via insurers' premiums net of claims. Neither uses some home insurance premium basket to measure what homeowners are facing - skyrocketing home insurance premiums (in Illinois, +16% to +30%).
BTW, a similar indirect methodology is used for health insurance - i.e. health insurers' earnings are used to indirectly measure the health insurance costs. Health insurance costs are also rising rapidly although that may be masked by group insurance coverage of employees. But those self-employed or retirees (for Medigap/supplemental insurance or Medicate Advantage premiums) may see higher costs.
Barron's (subscription)
https://www.barrons.com/advisor/articles/home-insurance-inflation-pain-5ca1061a?mod=hp_SP_A_1_1
Comments
Add the fact that our yearly insurance premiums are often billed in full (full payment due day one of the coverage period).
Often Insurer's collect interest as a finance option to pay premiums monthly.
For example, I pay 8% interest on top of the insurance premium to the insurer (my lender escrows insurance into my mortgage monthly payment). This added interest charge just adds further financial hardship to these premium increases.
Check my math but I believe this makes the 8% interest charges (in dollars) also 150% higher.