Why Home Premiums Will Soon Rise

Nov. 16, 2011 - PRLog -- Grand Rapids, Nov 16, 2011:  Odds are the next time you renew your home insurance you will see a significant rate increase, up to double of what you are paying now.

There has been a big increase in catastrophe events in the U.S. such a major flooding. In the first half of 2011 insurance companies paid more than twenty-seven  billion dollars in catastrophic loses alone (Al Slavin, Best Review  Nov., 2011).

Big contributors to 2011 losses were tornadoes like the one that hit Joplin, Missouri, which caused millions of dollars in damage, and was the biggest insurance event in the state's history (one hundred million in claims). Hurricane Irene, also did a good amount of damage causing massive flooding, and damaging thousands of homes and businesses. There have also been cases where one hundred thousand dollar homes have been paid one million dollars in claims.

While these events may not have affected your home, they did have an impact in the insurance industry. When something like the Joplin, MO occurs, insurance companies pay billions of dollars in claims, and  with a tough economic climate some insurance companies increase rates for all their customers, not just those impacted. It should be noted insurers are increasing rates so they can continue to provide insurance to everyone.

With weather having such a big impact in 2011 there is little that consumers can do to prevent seeing a rate increase, but there are ways to reduce the impact somewhat. Beyond bundling insurance, consumers can do things like improving their home. For example, installing high quality locks, or using monitored burglar alarms.

The single most important way to receive the best insurance rate and coverage possible is to have your independent insurance agent review your home insurance. They have the knowledge and the tools to put you in the best possible situation.

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