Insurance Renewals

New Year, New Insurance? 

   So 2016 has begun. I don't know about you, but I start re-evaluating at the start of a new year. You know, clean slate and all. It's easy to get caught up in starting anew. But when it comes to your insurance, this is not always the best idea. It is always a good idea to re-evaluate your insurance (when you are up for renewal, not just because it's a new year). But switching is not always the smartest option. There are many things to consider when looking at your renewal.

Have you had any lifestyle changes?

Did you get married? Divorced? Did you have a new baby? Or did one of your kids move out on their own? New job? New contact information? Did you move? (seriously, I have had clients forget to tell us they moved!) These changes can affect your pricing as well as the type and amount of coverage you may need.
   If you get married, your spouse is not automatically covered on your home insurance policy. If something happens and you are unable to take care of things, you want your spouse to be able to handle a claim for you. If you have a new baby, you need to think about life insurance. Do you need a policy or do you need to add coverage to the policy your currently have? If one of your kids moves out on their own, do they need renters insurance? Or it may be cost effective for them to be on their own auto policy. These factors can affect your coverage. Please talk to your agent if there have been any changes to your lifestyle.

Did you premium change?

   It happens. Premiums go up quite often, even if you didn't have a claim.This is not because of your agent. Please hear me when I tell you, your agent has no say in your insurance premiums. They did not raise your rates because they don't want your business. (I have actually had a client accuse me of raising their rates because I wanted to lose their business.)  Seriously!
    Carriers take rate changes. These rate changes have to be filed with and approved by the state Department of Insurance before they can be processed to the public customer. Again, your agent has no say in this process. If you are with an independent agency, your agent can re-shop your quotes. There may be some lower rates out there. Or you may find out that your carrier is still the best pricing for you. It isn't only about the cheapest insurance though. People often find a lower price. It happens. Just because your agent is an independent broker doesn't mean they have the lowest pricing every time. But please make sure the new quote gives you the coverage you need, not just the price you want.
    If your rates go down, you may look at increasing your coverage or lowering your deductibles. This can save you money in the long run and most likely won't cost you more that you were already paying in the short run.

How is your insurance carrier's financial stability?

   All insurance carriers are rated on their financial stability, based on their sales, customer service and claims history. You can search for your carrier's rating through Demotech  or AM Best You want a reputable carrier with a good rating. There are reasons carriers have unfavorable ratings so be aware.



   Your agent should be able to answer any questions you have about your coverage and your carrier. Know what coverage you need and make sure you have that coverage.  You need to know when your policy is renewing so you can be on the lookout for your renewal. When you get your renewal from your carrier, review it. Write down any questions you have and go over it with your agent. If you don't receive one, contact the carrier or your agent. You don't want the renewal to go by without at least looking at your coverage. It is ultimately your responsibility to make sure everything is set for a renewal. Some carriers inform the agent that a policy has not been paid, but unfortunately some don't let the agent know there is a problem. Look at emails and mail from your carrier so you don't miss any notices. Renewing your insurance policy (or policies) doesn't have to be an awful experience. Be aware of what you need to review and decide what you want to change (if anything). Partner with your agent. If they are not being much of a partner, find a new agent!

   If you have any questions about your insurance, please visit Brockman Premier Insurance,
email us or call 877-987-8683. We would love to help keep you insured!

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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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!

Have a question on your home, auto or business insurance?
Email Brockman Premier Insurance for a quote or answer to a question you have.
or call Toll free: 877-987-8683 or local: 214-592-0859