A recent Wall Street Journal article relayed that, while home prices continue to fall, the price on homeowners insurance premiums is going the opposite direction.
During the last five years, premiums have remained stable, however, that trend is expected to change soon. State Farm Mutual stated that, on average, it has increased its premiums for homeowners by 7.3 percent. This year, though, the company expected to raise its insurance premiums in as many as 18 states, with some experiencing a jump of more than 7 percent. Only two states will have reduced rates, the insurance company told the WSJ.
Many states are having their insurance premiums reassessed because of the recent disasters affecting the southern states, Alabama specifically. The nation still carries a balance of $18 billion from the after effects of Hurricane Katrina.
Areas such as Houston, which can be prone to a number of disasters, could soon experience significant premium increases. The Houston real estate market, as a result, could suffer, as more residents would then be unable to meet their monthly financial requirements.
However, as unemployment rates decline nationally, and payrolls and incomes increase, citizens might be able to cover the premium increases and further stimulate the economy. 
Courtesy of 2M Realty News