Insurance Renewals

Why Did My Rates Go Up?

   This is the most frequent question agents hear at renewal time. Sometimes rates go down, but most often, they go up, especially if we are talking about homeowners premiums. I know what you're thinking, "I didn't file a claim, so why did the rates go up?"
   So many factors affect home insurance rates. Claims are a big factor, but it isn't just claims. You may not have filed a claim, but others in your area did which impacts your rates. It doesn't seem fair, but you should think about the carrier paying out those claims. Let's say the carrier budgets $1 million for claims this year. But they had to actually pay out $1.5 million. That extra $500,000 has to come from somewhere, so they raise rates the next year to help make up the difference.
   Keep in mind, carriers cannot just decide to raise rates. Insurance is a highly regulated industry. Each state has its own insurance regulatory agency. Carriers have to file rate changes with the state agency and wait for approval. Usually the clients most affected would be those with lower credit scores (sorry!), those in areas of extensive claims and those who have filed claims.
   There are a few things you can do when you have a rate increase. The first thing you can do is shop for better rates. If you have an independent agent, ask them to shop for you. (Do not assume they will re-quote without you asking them to.) You should also ask your agent to review your coverage. You may be paying for coverage you don't need. Or you may need coverage you don't have (this, of course, will raise your rates).
    Watch for your renewal. You should get your renewal within 45 days of the renewal date. Your agent should be on the look out for it, but the responsibility is yours. You should know your coverage, your policy dates and how the payment will be made. Home carriers will mail (yes, snail mail!) your renewal to your mortgage company requesting payment. If you have changed mortgages during the policy period, you need to tell your insurance agent. Otherwise, they will send it to the wrong mortgage company and it won't be paid. You should also let your agent know if there have been any changes to your contact information. You would be surprised how many times I have not been able to get a hold of someone because I don't have their new phone number or email address.

If you have any questions about your home, auto or business insurance, 
email Brockman Premier Insurance or call 877-987-8683 
Be sure to visit our website!

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