Insurance claims

What does my renewal premium have to do with my neighbor's claim?

   Insurance agents often dread renewal calls. It would help if rates went down more often. Lord knows it would make our lives easier! But the truth is, everything seems to cost more and more each year. And often, Insurance is no different.
   Texas is the most volatile weather state in our country. Yea us!
We have Hurricanes, Hail storms, Thunder storms, Snow, Flooding and even an occasional Earthquake! Most states have one, maybe two, of these. But Texas has to the be the over-achiever and go for all of them. This volatile weather leads to the number one reason for insurance rate increases; Claims.
   "But I didn't file a claim!" you cry in frustration on the phone to your agent. To which your agent may reply, "But all of your neighbors did." And then you shake your head and think to yourself (or out loud), "So I have to pay for their claims?" Yes, yes you do.
   I know this is hard to believe, but insurance companies are not volunteering to fix your damages for free. They expect to be paid. It is a huge business. And like every other type of company, if a carrier has more expenses (claims) than they budgeted for, they will have to raise their rates to cover those expenses (claims). So if there are major ice storms in January, chances are many carriers are going to have to raise rates to pay for those claims by year's end.
   Most of the carriers I have seen do try to take care of the customer in a fair and appropriate manner. Of course "fair and appropriate" means different things to different people. But what the consumer must understand is that the insurance carrier is the one taking the risk. If you had to pay someone $500,000, wouldn't you make pretty darn sure they should get the money? I would.
   Whether it is $5,000 or $500,000, there are rules and guidelines to paying out claims. These are supposed to guide the carriers in evaluating what claims to pay and to what extent. There are some carriers who are being sued in a class action lawsuit by the state for not paying out eligible claims. So we know there are watchdogs out there looking out for the consumer. If you have a carrier who did not take care of you for an eligible claim, I am so very sorry. And I urge you to call the Texas Department of Insurance (TDI) at 1-800-252-3439 and report them or file a complaint online.
Do not let them get away with not taking care of you. You are a paying customer!
   * So my point here is that claims are the #1 reason premiums are increasing almost every year. There is no way around that. All insurance carriers are not evil any more than all consumers are scam artists.
   You can counteract increases by shopping around. (Another good reason to go with an independent agency!) When a renewal hits, I re-shop the client. While I cannot guarantee a lower rate, at least I can show the client that my agency cared enough to see if I could find something better for them!

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