Call: 203-637-6655 or email – Kyle Shepard

Wild Fires - Shepard Insurance Group

Prospective Premium Rate Trends For Home Insurance

It is very interesting to be an independent insurance agent in the face of Global Warming. It’s of little surprise that rates are going up, but having options give us some latitude in dealing with the increases.

“It’s of little surprise that rates are going up”

Here is what is driving the rate increases!

There are 2 primary drivers of the increase in premiums on home policies; natural disasters and then aging infrastructure.

Natural Disasters – in the last 20 years catastrophic storm frequency has doubled, and severity, the extent of the damage has doubled as well. Events such as:

Wild fires out west

Tornadoes in the mid-west

And Hurricanes in the east

Coupled with areas that were previously considered safe, are now experiencing significant storms.

Driven by drought, California has been on fire for nearly 5 years, experts are saying that the Rocky Mountain region is the next area in trouble due to the pine beetle killing the pine trees and their very dry climate.

Aging Infrastructure – driven primarily by aging plumbing and roofs, water damage claims have become the single largest volume of claims outside of weather driven storms.

Home insurance companies, supplied with historical claim data, and weather futures are in a bit of a scramble to address these emerging trends. Having options can be a key to controlling future premium increases.

If you are concerned about the future of your insurance costs, drop Kyle an email at kshepard@shepardinsgrp.com or call 203.698.9342 to get the intel you need.


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