04/18/2024
Long post, but hopefully you'll find a nugget of info that will help. Almost everyday someone makes a post regarding home and auto insurance. Personal lines are absolutely crazy at the moment, and if an agent tells you they're not, they are either ignorant or living under a rock.
First, if you rent and don't have a renters policy, get one NOW. Please don't wait. Don't be at the mercy of fundraising sites if you have a loss.
Many insurers are losing money, and they are trying to figure out how to turn the ship around. What we are seeing as a result are increased premiums, stricter underwriting guidelines, non-renewals, and some insurers are just not writing business at the moment.
One major point on both home and auto is to do your best to protect your credit score. It is a major factor in determining your rate. Don't kill the messenger, it's just a fact of the matter.
On the homeowners side, here is some advice. Not conclusive or anything, just info I think everyone should know:
Know your deductible. That is the amount you will pay before your insurance kicks in. The most common was $1000, but we are seeing insurers move to higher amounts. I personally carry a $2000 all perils deductible. We have an emergency fund to cover it just in case. Also, I personally won't file a claim on anything small that I can pay out of pocket. Claims are currently a huge deal, and I try my best to stay claims free. Find out if your deductible is all perils, percentage based, or if it has a separate wind/hail deductible.
Maintain your property. Many insurers are doing inspections, and showing pride in ownership is a real thing. Mow the grass, keep the junk put away, etc.
If your roof is approaching 15 years or more, seriously consider staying with your current insurer. Many insurers are only covering roofs at ACV (actual cash value/depreciated) at 15 years. If you currently have replacement cost coverage, I would sit tight for the moment. I get calls weekly from homeowners with older roofs, and I just tell them it is in their best interest to stay put.
Another thing on roofs, if your roof has dark staining, have it soft washed. I always thought it was from leaves or debris, but it is algae that can cause damage if left. I recently visited a client with a 20+ year old roof that looked new. He told me they have it washed every few years, and it is certainly paying off.
Now let's talk about auto insurance...
The basic stuff, well, should be basic: don't drive drunk or impaired, buckle up, put your phone down, don't speed, don't tailgate, and for the love of all that is holy, be careful on the highway. Leave a few minutes early. Watch out for each other, we all want to make it home to our families. Just like your credit score, your MVR is a major factor in determining your auto insurance rates. One at fault accident or ticket can cause huge issues.
What are your liability limits? We are a very litigious society, and personal injury lawsuits are paying out more than ever. If you carry minimum or low limits, and get sued for greater than your policy limits, you could be on the hook for the difference. I'm seeing 25/50/25 limits way too often when reviewing policies. If you have those limits, ask your agent how much it would be to increase it to at least 50/100/50. My family carries 250/500/250 with a $1M umbrella. Yes, we pay more for our auto insurance and have to budget accordingly, but it gives me peace of mind. More on umbrella policies later.
Make sure you have uninsured/underinsured motorist coverage, and that is "added on" not "reduced by" or "difference in limits". My personal UM limits are equal to my liability limits. If I'm in an accident and the at fault driver is uninsured or underinsured, I want to make sure I'm covered to the best of my ability. Three family members were in a serious accident several year ago, and the at fault driver was only carrying 25/50/25 limits. His limits didn't even cover half of the vehicle he totaled. Thankfully their UM/UI coverage saved the day. Really drove home to me how important it is.
An umbrella policy is the cheapest liability coverage you can buy. Most of them are $1 or $2M. They do require increased auto liability limits, but well worth the additional protection in my opinion.
I hope you found something useful in all this. As I said, it wasn't meant to be conclusive, just some key points to help. I feel the pain in my own home and auto rates. Feel free to ask if you have any questions.
Be kind to your agent, I promise you we're all doing our best in this situation.
