Home Insurance is Following the Health Insurance Model

A number of years ago with health insurance premiums escalating at an uncontrollable %, the plan for providing health insurance changed to a more severe claim response. Routine maintenance was still provided but larger deductibles applied for any condition, backed up with tax deductible Health Savings Accounts.

Home insurance is beginning to adopt that model as an effort to control the ravages of climate change and devastating storms, on home insurance premiums.

The same but a bit different

It used to be home insurance deductibles were $1,000, $2,500, or even $5,000. Any property losses above those deductibles were submitted for recovery.

But climate change is crushing the home insurance market causing a re-think on what the best way is to insure.

So here is the current model to control premium costs:

* routine home maintenance – still very important to avert a loss that is avoidable

* loss mitigation – a well-designed alarm system for fire & burglary and a water shut off device to eliminate inside water losses.

* higher deductibles – of $10,000, $25,000 or even $50,000

* pocket the savings – to offset a property loss that is less than the new deductible

On the agency front we have seen premium increases on home insurance that range from high single digit increases to 40%, and there is no sign that climate with the devastating storms will improve.

Take a moment to investigate the new model to see if it works for you. The savings offered, coupled with a high level of property maintenance and strong security system, will save you $$ in lower premiums into the future.

If you need assistance investigating drop Kyle an email at kshepard@shepardinsgrp.com or call 203.698.9342