Huge losses related to weather events and other natural causes are triggering higher premiums for homeowners and businesses along with the loss of coverage availability.
Just how much are these events costing the insurance companies?
Hurricane Sandy, according to the U.S. National Oceanic and Atmospheric Association (NOAA) is more than $ 50 billion and still climbing. Hurricane Katrina came in at $108 billion.
The most recent storm in Oklahoma is set at $3 billion.
Flood insurance rates are expected to increase an average of 25 percent over the next 5 years.
Deductible minimums are expected to increase starting at $5,000 for states where these events occur most often.
Then there is Drought. Last year, a severe drought plagued nearly half of the US, killing crops and herds across the country. The cost to the insurance companies: $15 billion. With all the dryness comes a large threat of fires and those figures have not come in as of this blog.
These are just some of the factors resulting in the increases. Although you may not live in New Jersey or Oklahoma, you as a business owner and homeowner are feeling the punch to your bottom line.
The cost to rebuild has also increased which is driving premiums up. Just about everyone will see an increase on their property insurance bill this year.
Other factors which can cause an increase in your premium:
- Pools
- Dogs
- Trampolines
- Treehouses
- Guns
- Big-ticket jewelry
- Home businesses
- Heating fires (wood-burning stoves, fireplaces, etc)
- Sewer backup
- Zip lines (backyard zip lines)
- Exotic pets
There are also discounts you may be eligible for an opportunities to lower your premiums:
- Be a faithful customer or having good credit.
- Have multiple policies with the same insurance company can sometimes save you up to 30%.
- Increase your deductible to instead of $ 500 or $1,000, homeowners who can afford a big out-of-pocket may be willing to gamble that nothing will happen to their home might choose a $ 5,000 or higher deductible and can save as much as 35%.
- Install an advanced alarm system can save you an average of 10%
Disaster-prep your home and business. Sealing roof beneath the shingles and pruning trees away from the building or home. For more information see the Insurance Institute for Business and Home Safety, or IBHS. http://www.disastersafety.org/
