Following five years of fairly stable homeowner's insurance premiums, some of the largest insurers are beginning to increase their rates.  According to a report in The Wall Street Journal, the combination of rising toll of natural disasters and development of new risk models are fueling the increases.

In addition, costs to rebuild home due to rising energy and material costs are rising.  Even though home prices continue to struggle, the rebuilding costs are the primary determinant in establishing the amount of insurance required for a property.

The federal flood-insurance program is also expected to see increases as Congress considers ways to address an $18 billion deficit that remains from Hurricane Katrina.  A proposal currently under consideration in Congress would raise the cap on annual flood-insurance premiums from 10% to 20%.