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70% of Americans are reviewing their insurance policies. Are you?

I recently read an article about the rate increases we are seeing in the insurance industry. It talks about why American's are reviewing their policies. Although we ask our insureds to review their policies at least annually, just to make sure there are no gaps in coverage, that's not why they are reviewing them now.

I think it's safe to say that we all understand that our economy drives the price of everything currently. It's fair to say that we are all looking at ways we can cut costs and save money, which seems increasingly difficult to do in today's world. One way people are trying to save money is by making changes to their insurance policies.


However, it's not just economical factors that are driving premium rates to rise. Loss ratios play a large part in how insurance companies set rates. A heavy loss year, or years, like in recent cases, have really caused havoc in the insurance industry. Combine 3 years of huge losses with high payouts and then Covid/economy hit, causing even more issues for companies and premiums.


Take the July 19, 2019 hail storm we had in our area just as an example. That storm caused multi-million dollar payouts from companies - just in our area. Then we came into May 2022 and tornadoes/flat line winds that hit our area caused another round of multi-million dollar payouts. These losses alone were devastating to some insurance carriers. Companies have to carry a reserve in order to pay claims. When those reserves start to deplete, they have to find ways to recover that money so there are funds available to pay the next round of claims.


Now enter our economy. We have replacement parts on cars costing more money, more technology going into vehicles causing higher priced values, materials to rebuild homes are costing more money, labor cost increases, etc. This all plays a part in how and why insurance rates are adjusted.


Because of these factors, insurance carries are also increasing restrictions that were not in place a year or so ago. Restrictions such as not writing new business if you've had a claim in the last 3 years. Or making a $2500 deductible the lowest you can go on your homeowners. Making roof's that are 5 years or older actual cash value instead of replacement costs. These restrictions are being put into place so our companies can maintain and continue to offer the services they do.

There are a few things we can look at to help with some of the rate increases such as increasing deductibles, decreasing personal property amounts, adding multipolicy discounts, etc. We would never advise you to cancel a policy. That only leaves you open to gaps in coverage which could be devastating in the event of a loss. Before making a decision such as that, come in and let's review your policies. We are your insurance advisors as well as your agent. Our goal is to make sure you have coverage in place to protect you and yours. Call your agent. Set a time to come in and see us.







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