Many of our clients have asked, "why do home insurance rates continue to go up?"
There are many factors involved as to why homeowners insurance rates continue to rise, and we would like to keep you informed about the cause and what may, or may not, be ahead.
Increases in insurance rates are primarily the result of two main factors:
- The severity and frequency of weather-related events throughout Texas
- The increased cost of repairing damaged property as a consequence of these storms
Forecasters are predicting that potentially dangerous weather patterns could become more frequent and severe in the months ahead. With this increase in RISK and higher costs of repairs, it is very likely that we will continue to see higher rates.
Reduced coverage option
To keep the cost of insurance reasonable some insurance companies have decided that they will reduce coverage for weather-related claims by only paying for the Actual Cash Value of roof damage.
Many carriers are already doing this, and many other insurance companies are also considering ACV on roof damage. Oklahoma, as well as most of the country, have already gone to ACV on roof damage.
Homeowners need to know what their options are and the consequences of choosing to go with a policy that may be cheaper but provides less coverage on claims that are likely to occur, such as weather-related events.
Don't wait till after the storm
The age of the roof is a big factor, and most carriers offer discounts and replacement cost for new roofs. If your roof is over 15 years old, it is likely that the insurance company will not provide replacement cost or they will not write it at all.
It is important to know what type of policy you have and what to expect before a weather event such as a hail storm or tornado.
How to get the best home insurance rate?
To find the best homeowners insurance rates you’ve got to get quotes. It's important that you talk to a reputable insurance agent that has your best interest as the top priority and takes a risk management approach when discussing your options.
At the Thumann Agency, every single one of the 60 insurance companies we represent meets our standards for customer satisfaction, coverage, and financial strength.