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North Dakota, USA | Ron..NE ILL..10/48 - 11/7/2023 06:23
I have heard that much of the home insurance increases (all companies) is attributed to the big hurricane damage in FL in recent years.
If this is in fact true, I don't know why we in NE IL have to help pay the damage to insurance co. by those living where hurricanes have occurred since the beginning of time. Does it surprise FL people to find that hurricanes have damaged property, including homes & vehicles. One always wonders where those cars/trucks submerged in salt water show up later.
Yes, in NE IL we can have some shingles torn off due to high winds, or an occasional tornado. But, they are localized in this part of the country.
Maybe if no one sold home insurance in FL then people would move back to the midwest and our insurance would go down also.
You cannot just blame the hurricanes. Insurance companies in the Midwest have had several terrible years in a row due to not only rising cost of claims but major damage from the derecho windstorms that seem to hit every year now. They seem to do the same type of damage as a hurricane, just in a less densely populated area.
It is easy to say that there have always been derechos and it is just that we hear more about them now. But insurance is a business of statistics and they know their past claim payments, damage amounts, locations, causes, etc. They are saying there have been more of them in recent years than in the past. I cannot prove them wrong.
Then, take into account that your company, in order to cover their own butts, buys reinsurance that pays them back after they meet certain thresholds of claim payouts. There are reinsurance companies that are leaving the business or limiting what they will take in certain parts of the country due to the unpredictability of losses. Right now the center of the country is an area they are leery of due to not knowing if these storms are the new normal or just a short term occurrence. One thing that really scares the insurance industry is not knowing.
Most of the companies that write hurricane insurance write it with an extremely high deductible, and an extremely high premium. Hurricanes have been common long enough that over the long term, the industry know what to expect for losses (Generally speaking) and have tried to price their products accordingly.
Up here in ND, we are seeing our rates go up substantially too, but nothing like I have been hearing from areas south of here. The way it sounds, it will be painful for a couple years but I am just glad that the companies I work with did not leave the market.
Eric in ND | |
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Home Insurance 67.5% Increase
