Insurance, it's not anyone’s favorite topic right now! It may be a topic of conversation, but there’s not a lot of good being said about it these days.
Insurance companies continue to see an increasing number of storm related claims as well as increasing costs of repairs. The companies are required to keep adequate reserves to pay claims, or they won’t be able to stay in business. This means that we, as insureds, need to do what we can to help prevent damage, and share more of the claim costs.
Some insureds are receiving non-renewal notices because their insurance company is no longer writing home insurance business in Nebraska. Some insureds are receiving non-renewal notices because of their claim history. Companies are making changes so they can continue to write home insurance coverage. We are seeing rate increases, changes in minimum deductibles, cosmetic exclusions, and maybe roof “scheduled” coverage versus replacement cost.
The companies are putting stricter underwriting rules on the business they will accept. When reviewing a risk, they look at a person’s credit rating, past claim history, location of the property, and the condition of the property. Some companies also require that auto insurance be written with the home insurance. In these cases, the auto risk must qualify as well. So, add auto claims and driving records to the underwriting list as well.
The past claim history includes claim history on the specific person, prior addresses, current address, as well as the address of a property being purchased. A lot of companies won’t agree to write coverage if there are more than two storm related claims. Some won’t write if there are any non-storm-related claims in the past three years.
The underwriting review process is a lot more in-depth, so it takes longer to get a quote and get approval to write coverage on a property. A lot of companies are doing exterior inspections of the home prior to agreeing to write coverage.
Things to consider if you are buying a home that will need to be insured…
- Is there ANY existing damage to the property?
- Existing damage can result in a decline in writing insurance OR at minimum, an exclusion on items with existing damage.
- When was the roof replaced?
- The age of the roof is a HUGE factor. The newer the roof, the better the premium.
- Are shingles impact resistant?
- A discount is offered for Class 3 or Class 4 impact resistant shingles. Note that a roofing certification form may be required to qualify for the discount.
- Get details on prior claims/damages on the home being purchased.
- When was the damage? What caused the damage? Has all damage been repaired?
- Get started on your insurance coverage RIGHT AWAY as it could take two to three weeks to get approval.
Remember, we are insurance customers too, so we fully understand the hardship and frustration with insurance right now. We DO appreciate your business and look forward to assisting you.
PLEASE give us a call with any questions on your insurance, for insurance quotes, or to review your existing coverage.
-Kathy, Kristen, Allisa, Dani, & Joan-