Right now, the insurance industry is firmly in what is called a “hard market”. That just means that insurance companies are in a period of increasing rates while also limiting the capacity to write new policies. They are doing this because they are simply paying out more money in money in claims and expenses than they are taking in from policy revenue.
One of the ways they are responding to this is by increasing the coverage on every home policy by a certain percentage to align your policy with how much it would cost to rebuild it. In addition to increased coverage on your policy, every company continues to also take rate increases due to claim severity and frequency across the Midwest.
2023 has already set the record for yearly billion-dollar weather disasters in the U.S. There have been 23 extreme weather events that cost at least $1 billion this year through August, according to the National Oceanic and Atmospheric Administration (NOAA).
What can a typical homeowner do to help keep their rates down?
- Work with an Independent Insurance Agent
The easiest thing most customers can do is simply work with an Independent Insurance Agent. They represent multiple insurance companies on the marketplace and can help you compare options while still making sure you are covered appropriately.
- Bundle your home and auto policies
Almost every insurance company on the market offers a bundled discount for insuring your home and auto policies together. Contact an independent insurance agent to help you look at options for bundling those policies together. The account discount is worth up to 20% on both the auto and the home side with some companies.
- Don’t shop on price alone
For most families, their home is their largest asset, so you want to make sure it’s covered appropriately. Make sure the insurance agency you are dealing with takes the time to answer all your questions and helps address any concerns.
- Consider increasing your deductible
Most insurance companies in Kansas have at least a minimum deductible of $1,500 but it may make sense to consider increasing that to $2,500. For very large homes, a deductible at the $5,000 level is now sometimes the sweet spot of coverage and value.
- Pay attention to how your roof is insured
If you are shopping for insurance, make sure you are not being quoted with a “roof replacement schedule” instead of full replacement cost. That means a claim for wind or hail on your roof would only be paid on a reduced schedule for every year the roof ages.
Working with families to help them navigate the complex world of insurance is what we do every day. Connect with Us for an insurance portfolio review and evaluation.
At Flury-Hinderks Insurance, customer education is very important to us, and we are happy to take the time to review coverage and provide counsel for our customers. If you do not have a great relationship with your current insurance agency. Connect with us for an insurance portfolio review today.
