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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Home Insurance FAQs

Navigating the Home Insurance               Mix-master- Arrgghh!

   Have you ever tried to navigate the mix-master in an unfamiliar city? I have lived in and around the Dallas/Ft Worth metroplex most of my life and I still haven't mastered them. There was only one or two when I first started driving. Now it seems every suburb has it's own version of the Mix-master. 
   Have you tried to navigate shopping for Homeowner's Insurance lately? Same story. There used to be a few carriers- we all grew up with Allstate, State Farm and Farmers. Now, there are dozens and dozens. Talk about navigating confusing roads!
   It is easy to get overwhelmed trying to figure out your policy. So I thought I would share a few of the questions we hear the most often:
* Why is my dwelling insured for so much more than I paid for the home?
Because your insurance covers the cost to REBUILD your home, not move into it. Most carriers have their own dwelling amount estimator. Agents plug in the specifics of a home- square ft, roof type, age, updates, etc and the estimator computes the cost that carrier is willing to pay to rebuild the home from foundation to roofing. 
* Are my wedding rings covered?
Most policies will have some type of jewelry coverage. Most of them will be basic, $2500-$5000 in coverage. But if you want your precious jewelry covered, you will want to consider a scheduled personal property endorsement. It will cover specific pieces without a deductible. It will also cover theft and mysterious disappearance. The basic jewelry coverage in the policy will not.  The same goes for your coin collection, art collection, gun collection (Hey - we are in Texas!)
*If my dog bites a neighbor, will my insurance cover it?
Yes. Your personal liability will cover this.  As long as it is not a ineligible dog breed and there isn't an animal exclusion on the policy. Most carriers will have an ineligible dog breed list. Some will not write the home at all, while others will exclude liability in the case of a dog attack. Most of the dogs on the forbidden list are aggressive breeds; Pitbulls, Dobermans, Rottweilers, etc...
  Believe me- not all insurance policies are the same! As independent agents, my husband and I see many different types of policies. I feel for people calling in with questions- the ones who are truly trying to understand what their coverage is. I know the time and effort it took us to learn the carriers and coverage. And it is what we do everyday, all day. We realize most of our clients don't have that kind of time. And you shouldn't have to. That is what we agents are for! 


Got questions? Call or visit it our website: 
Brockman Premier Insurance
local: 214-592-0859
toll free: 1-877-987-8683   

Claims

Think Before You Claim!

   That storm last night took some tiles off of your roof. It also blew down tree branches onto your fence. Do you file a claim? There is no hard and fast rule about filing insurance claims. The sole purpose of insurance is to make you whole again in the event of a loss. But what if it is a minor loss? Is it worth the possible rate increase?
   One rule of thumb we have used with customers is to use your deductible to judge. If you have a 1% deductible on a $250,000 dwelling value, your out of pocket will be $2,500. If the damage is less than the $2,500, it may be a good idea to pay for the repairs out of pocket and not file the claim. If it is more than the deductible, you most likely would want to file the claim to keep your out of pocket expenses in check. But you may see a premium increase at your next renewal. 
   Weather Claims and Catastrophe claims do not usually cause an increase in your premium. Slips and falls, water and Dog Bites are the most common claims that will cause an increase in your premium. Many carriers will not insure a homeowner with multiple water claims. And those that will insure with multiple water claims, will do so at a higher premium. 
   Carriers will offer various deductibles. The higher the deductible, the lower the premium and vice versa. With a homeowners policy you will generally have 2 different deductibles. One for Wind/Hail and one for All other perils.
You can often get the same amount for both deductibles, or choose different amounts for each. Again, the pricing will vary so ask talk with your agent before you sign off on the policy. Know what you have. 
  You pay for insurance so it will compensate you in the case of a loss. There is a fine line between not needing to file a claim and needing to file a claim.  If you do have a claim, talk with your agent to help you decide what the next step will be.  That is what your insurance agent is there for! If you need an agent, contact us at The Brockman Agency

Thanks for reading!