Roof and Coverage Updates
Some important changes for roofs have continued to come up over the last year. Older roofs are getting tougher to re-quote. Many carriers are electing to avoid issuing replacement policies with roofs older than 15 years old. Older Wood Shake roofs or roofs with Composition over Shake are pretty much impossible to write. Only by exception can we even place new business with these roof types.
So, if you want more competitive options you may want to consider replacing those roofs yourselves. Some of our carriers have even decided to change the coverage offered at renewal if the roofs are in obvious need of repair due to normal wear and tear. The carriers don’t automatically renew with the same deductibles and coverage’s which is why it is important to review the packages when they come to you every year.
Don’t just stash the renewal somewhere…give us a call or shoot us an email to review for you. I predict most of our carriers will be raising minimum wind/hail deductibles in the future so it is important you understand how that impacts your bottom line from a claim.
Keep in mind, we have access to many carriers so when you get your renewal, we will be glad to review with you the coverage’s and premiums. We can also look at other options to save money. Don’t hesitate to call or write when you get your renewal.
Why Homeowners Rates may be Trending Higher
Kemper Preferred sent us a newsletter that explained some of the reasons why rates have been going up. I decided to steal from their newsletter and share to you.
"If you’ve recently received a quote for a new or renewal homeowners policy, it’s possible that your premium is higher than you paid last year. There are many reasons for this. You may have recently moved to a much older home or one that is further from a fire station, for example. And the new “normal” extreme weather pattern and subsequent growing number of claims result in higher premiums for some of us too."
The Escalating Cost of Insurer’s Insurance
And, while weather-related losses have driven up the cost of insurance for consumers like you, it’s also driven up the cost of reinsurance for insurance companies. Insurers usually buy reinsurance to cover losses over a certain cumulative dollar amount. If the claims a single insurer suffers pierces that threshold, the reinsurer would cover the amount over that threshold. Because of the new normal severe weather pattern and resulting high number of big claims, reinsurers have been raising their rates, increasing costs for insurance companies, which in turn raises consumers’ homeowners premium.
Building Expenses are on the Increase
Prices for building materials such as cement, lumber, copper and aluminum have risen regularly, making the cost of repairing or rebuilding a home more expensive.
You Get What You Pay For
If you do receive a higher new or renewal quote on homeowners insurance, you may be tempted to shop around. If you do, it’s important to understand what your current policy covers. Some insurers are selling policies with lower premiums, but with stripped down coverage.