As an insurance advisor, wekeep current on the trends in the insurance industry that may affect your insurance protection. To that end, we want to make you aware of some changes we are seeing as a result of last year’s catastrophic losses that are illustrated in our March 8th blog entry.
“Despite Mild Winter, Keep An Eye on Rising Insurance Rates”
Because of these large losses, companies are looking closely at their Property insurance rates (including those under Business insurance policies as well as Homeowners) for adjustment depending on a number of factors, including claim history, the age of the structure and where you live. Most of our clients have been seeing a 5-15% increase in their rates in general. Some other companies in the industry have been increasing rates up to 30%. Clients with numerous claims will see more of an increase. However, some clients in preferred rating tiers and no claim history have been seeing little to no increase in rates.
Homeowners companies will be making additional changes as they try to mitigate future losses. For example, beginning in October, Selective Insurance will be issuing their Homeowners renewals with a mandatory $1000 deductible. While a large number of our clients already realize a savings by using a $1000 deductible, clients with lower deductibles will see their deductible rise. Other companies have made similar changes in other states, but not yet in Pennsylvania. We have seen this before. Where once a $100 or $250 deductible was the norm, $500 had been the norm for the past decade. Moving forward, $1000 or even $2500 deductibles will now be the norm.
This is the perfect time for you to review your insurance protection. Make sure you are taking advantage of all the discounts you deserve. Call your agent to discuss your options, provide alternatives, and make sure that you and your budget are prepared for these industry changes.