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North Carolina Homeowners Insurance continues to see upward rate pressure.
Posted by Allen and Ballard Insurance Associates on
What’s going on?North Carolina homeowner rates continue to be inadequate for the current exposure in the state.Like many parts of the country, North Carolina has been impacted by more extreme weather events than usual.Large parts of North Carolina have suffered both numerous and major storms in the last 5 years which have created historically record losses. After consecutive years of large losses, Homeowners companies are taking steps to correct rates so that they adequately cover the North Carolina Home Insurance exposure. (On a side note one of our Auto Insurance Carriers has not had an overall Auto rate increase since 2004)In addition, North Carolina has a unique challenge because of the underfunded beach plan. In many cases the premiums are not sufficient to adequately cover the huge hurricane exposure along the North Carolina coast. This creates a large potential risk for all Insurance Carriers who write Homeowners insurance in the state of North Carolina. In the event of a catastrophic loss most Home Insurance carriers would be required to fund this under insured exposure leaving them with the potential for massive losses.So how are Home Insurance carriers responding? Some companies have left the state. Some companies have ceased writing Homeowners Insurance. Some companies will only write your Homeowners Insurance if you write your Auto Insurance with them. Some companies have increased the minimum policy deductible. Some companies now have a separate and higher wind/hail deductible. Most companies are taking rate increases on Both Home AND Auto. Some companies are non-renewing mono-line Homeowners policies.Most increases insured’s are seeing on Homeowners Insurance Premiums are a result of across the board increases.However, many insurance companies have developed more and more sophisticated pricing models that are also impacted by insured specific items.What are some insured specific items that can impact your individual rate? Your Deductible Limit Age of your Home Your Insurance Score (used to determine the risk of individual insured’s based on a multitude of variables) The number of losses and claims you have submitted The county your home is located in The construction type of your home (Frame, Masonry Veneer, etc.) Alarm types Protection Class- based on proximity of Fire Hydrants and Fire Departments and their ability to respond to a fireWhat can you do to help reduce your Homeowners Insurance Rates?Increase your deductible. Insurance is meant to cover the losses you cannot possibly cover on your own. It is not meant to be a maintenance policy. Some approximate savings %’s (of course each Insurance Company and individual will vary)- Deductible Now New Deductible Average Approximate Savings $500 $1,000 -13% $500 $1,500 -24% $500 $2,500 -35% $1,000 $1,500 -12% $1,000 $2,500 -25% Combine your Home and Auto Insurance coverage with the same Insurance Company when possible. Most Insurance companies offer a multi-policy discount on both policies and it can really be significant on the Homeowner’s policy.Consult with your agent before turning in claims. We are here to help you make an informed decision about whether there is coverage, whether the loss is greater than your deductible and the possible impact of turning in a claim on future rates and coverage.Deal with an Independent Insurance agent. As an Independent Insurance agent we do our best to match you with the best Insurance Carrier for your individual needs. We are consumers too, and we do everything we can to help maximize your coverage and keep your insurance rates as low as possible.We hope this provides you a better understanding of what is going on with the North Carolina Homeowners Insurance market. If you have additional questions please feel free to contact our agency at-Service@AllenAndBallard.com or at 704-795-7801.Again, thank you for allowing us to serve your insurance needs.Your Allen and Ballard Insurance Team