An important consideration for selecting your home insurer.
It is evident that “global warming” is taking hold of our weather. From the winds of hurricanes & tornados, to large wildfires, weather related events are happening more often and with significantly higher intensity. And this means more and larger claims.
Clearly everyone wants great coverage and stable rates. But how do you select an insurer to get those two results?
Look Large!! Look for Strong Financial Ratings.
For 3 important reasons:
Large companies have the resources to handle the claims of a disaster. Response time to a large number of claims is key in minimizing the aggravation of an already challenging event.
Large companies have the spread of risk over a vast geographic area, that helps lessen the impact of a disaster when claims flow to the bottom line of the insurer. With frequency and severity increasing, the creep of insurance rates/premiums will not be far behind.
Strong Financials – are critical to respond to even the most severe of storms.
Be clear that a regional insurer with focus in a particular geographic area, or even a national insurance with an unusually high number of properties in high claim areas are pre disposed to higher rate increases, especially if you have claims.
It is a challenge to understand the algorithm that insurers use today to determine rates. But being clear on the larger drivers of future rates will be key in controlling future costs for comprehensive coverages.