Home Insurance
Brutal storms—including some that hit quite a few years ago—are causing rates on homeowner’s and flood insurance policies to skyrocket.
According to the Coloradoan, locals in northern Colorado who have grown accustomed to rates inching up annually due to simple inflation have suddenly been subject to rate hikes in the neighborhood of 30%. Insurers say that increases are necessary in light of years of natural disasters—which have resulted in years of high payouts for homeowner’s insurance claims. In Colorado, the recent streak of damaging weather began in 2009, the most expensive hail season in the state’s history, and has continued on with severe wildfires and floods.
The rate hike phenomenon is hardly limited to Colorado. Earlier this year, angry homeowners in North Carolina voiced their frustrations with the local insurance industry’s request for rate increases of 25%. The increases, which would come just a year after a 7% rise in premiums was OK’d, are necessary due to “substantial windstorms, tornadoes, hail storms” in the state, insurers argue.
During a conference call with analysts last week, the Hartford Financial Services Group announced plans to “raise rates, increase wind and hail deductibles, and offer policies with reduced coverage to improve profits” for a wide range of homeowners, according to the Hartford Courant. The Hartford and other insurance companies are taking action specifically in Tornado Alley, the swath of states in the middle of the country where wind, hail, and tornadoes are most likely to wreak havoc. And they’re reportedly taking action not in response to a one-time disaster but based on weather events (and corresponding costs for insurers paying out claims) that kicked off back in 2008, when damage from hail and wind caused record losses.
Will brutal storms drive prices even higher? CLICK HERE
Home insurance prices jump up is brought to you by TReXGlobal.com, maker of the world's easiest Property Management Software.
Are you a landlord or property manager? MAKE PROPERTY MANAGEMENT EASY, get your tenant to pay rent online!
No comments:
Post a Comment