As 2013 begins, we continue to see repercussions of past year’s natural catastrophes which tallied $57.9 billion in insured losses in 2012 alone. Insurance is being used to rebuild entire communities. To that end, consumers will see is a sharp increase in property insurance rates, both on the Homeowners and Commercial Property sectors. Almost all insurance companies are seeking rate in order to mitigate losses and build up their reserves for future severe weather events which are becoming the new normal.
Homeowners insurance is seeing increases of up to 30% in the industry, although most are in the 12-15% range. Companies are also instituting mandatory $1000, $1500 or $2500 deductibles for new policies. Other companies are severely restricting the ability to place new business in hard hit areas. The increases you see are also being seen by your neighbor as well.
Commercially, property losses are also driving increases of 10-15% in rate. While restrictions are not as strict on new business as seen in the Homeowners sector, much attention is being paid to prior losses. Companies look at each account in order to determine if additional rate is needed due to claim history. We work on your behalf, reviewing your policies with them and looking to other companies as well to keep you protected and within budget.
The industry outlook has premiums increasing this year and in 2014, although at a lower level.
We know that this economy does not lend itself to welcoming news of price increases. However, these changes are warranted in order keep a viable insurance marketplace. The next natural catastrophe is not a matter of if, but when. We feel that helping you be prepared for such eventualities is of the utmost importance. The crafting your insurance protection is a partnership, one that we value and one that depends on communication. Please call us anytime to discuss your questions or concerns. We look forward to helping you protect what’s important in your life.