My Insurance Guy- Joe Caudy LUTCF, CLCS

03/06/2025

Are insurance rates actually starting to plateau?

To no surprise, insurance rates have been quite the rollercoaster ride for the last 2-3 years. And when I say rollercoaster- I mean a very tall long way to the top- where most policyowners are teetering on finally going down the first drop.

From some early renewals I'm seeing in 2025- that drop is by no means steep. It's probably the biggest disappointment of a ride you've been on. But it looks to at least be some type of momentum. Just a very very slow momentum.

Home rates were hit the hardest in last renewal cycle of 2024. The trend will continue through 2025, but not nearly as bad- unless mother nature says otherwise. Cross your fingers for a calm spring, not-so-stormy summer, and a nice easy fall season. Keep an eye on the inflation meter.

As for auto rates, the trend seems to be focused on losses and driving records. When I say trend, I am referring to when shopping your rates. Carriers are really focusing on the history and rating accordingly. The good news: If you have a clean record with no recent losses (in last 3 years ideally), you are the ideal candidate to at least shop your rates.

As always, feel free to message me if you would like more insight. To my fellow agents and specialists out there- keep doing what you do!

Cheers!

Joe

02/11/2025

RENTAL CAR COVERAGE: What you need to know.

There is an optional endorsement on your auto policy that allows for you to rent a car while yours is being repaired (covered insurance loss). This is a coverage that is good for up to 30 days and will cease when the repairs are made.

The most common coverage on most auto policies is $30 / $900, which simply means $30 per day, up to $900 (30 days). Well that worked pretty good BEFORE all the inflation hit within the last few years. Now, it is more ideal to bump that coverage to AT LEAST $55 per day, or up to $1650 (30 days). The cost to increase this isn't terrible.

I'm not saying that $30 per day won't provide a vehicle for you to drive. It most likely will- if you are ok with driving a very very small subcompact. Where this gets ugly is if you have a large family- maybe that drives a large SUV, like a Suburban or Expedition. You aren't limited to the smaller car; you can easily upgrade with a catch: YOU are responsible for the additional cost. So if you needed a vehicle that costs $55 per day, and you only have $30 per day, you will incur the charge of $25. And let's say it takes 3 weeks for the repair, you would be paying $525 to the rental car company.

If you are the type of driver that says "I just need something from point A to B", then you may consider leaving this coverage or bumping it slightly. But if you are the type that MUST be able to cart around a family with car seats and what not, then be sure to UPGRADE this coverage as soon as you can.

One final note, some repair facilities offer FREE loaners. What the trend here is a waiting list and a delay on the actual repair of a vehicle while the free loaners are in rotation. Also, if you total a vehicle, Rental Reimbursement can also kick in while the insurance company researches the total loss settlement.

Make sure to call your insurance agent and bump up this coverage if you haven't done so. It could potentially save you a lot of money!

Cheers!

Joe

07/09/2024

GET YOUR BASEMENT READY!

From our inhouse weather specialist Micah Schieber):

Hey all!

Just a heads up! Please get your basements ready for tomorrow. With the remnants of hurricane Beryl headed our way, tomorrow we can see upwards of 4 inches of rain. We are already quite saturated as is. This much rain in the span of 20 hours will flood streets, parking lots, overflow small creeks, and find its way into your basement. Please notify any clients you can.

Thank you Micah for the heads up! With that said, here's what you can do to minimize the potential of loss:

👉Make sure downspouts are attached.
👉Make sure back up sump pump is ready to go.
👉Anything on the floor should be on risers or on shelving.
👉Have an idea of who you want to use for restoration service.

As always, stay safe and NEVER walk into a basement that has water near or at electrical outlets. DO NOT attempt to clean clogged eaves during a lightming storm.

Stay dry if you can!

Joe

06/11/2024

It's been a bit since I last posted on this page. I appreciate all of you that have remained a follower and I really promise to do better with updates in the future!

There is a lot on my mind, but I want to quickly cover the Life Insurance topic.

I have seen so much death lately. Especially people in their late 30's and early 40's. If you haven't reviewed your Life Insurance plan, please do. Group fundraising isn't the way to have to combat the cost of a funeral and replace one's income. It's a band aid and might help- because after all, something is better than nothing.

Remember, I've said this for years- It's not what you do after, it's what you do before. We are not guaranteed tomorrow, but with proper planning, we can guarantee that a family is financially stable after a loved one's passing.

Message me if you'd like to discuss. It's the best free advice I can give.

Joe

01/16/2024

Neighbors Tree: Who's responsible?

This past weekend was our first winter storm of the season... and it sure did pack a punch. Lots of trees down, power outages, and slippery / snow covered roads. With that being said, I noticed a lot of keyboard warriors (especially on Facebook) giving their "expertise" on the scenario of a neighbor's tree falling on their own house.

Here's the simple, easy, straight forward answer, that many will still argue:

YOU ARE RESPONSIBLE FOR YOUR PROPERTY.

This isn't the insurance company making this rule. It's state law. So, in the event that your neighbor's tree comes crashing down and damages your home, you ARE RESPONSIBLE for the deductible, you ARE RESPONSIBLE for the repairs to YOUR home, and you ARE RESPONSIBLE for the removal of the tree on YOUR property.

I see a lot of people ask for agreement on this topic. Here's the thing, it won't change the outcome. You just need to simply understand how it works and prepare for it.

Neighbors can be great until something like this happens. If you see a potential hazard, maybe have that tough conversation while the relationship is good. I've seen some neighbors go halfsies on tree removal. I've also seen neighbors lose their minds when the conversation is brought up. But again, no matter the outcome, you ARE STILL RESPONSIBLE.

10/13/2023

Homeowner's Insurance and the Sausage McMuffin

I went through the McDonald's drive thru yesterday morning. I ordered a Sausage McMuffin. The nice lady reads the total to me- "That will be $3.04". I quickly replied "No, I just ordered one little sandwich (ya know, the one with no egg)". She then again says "Yes, that will be $3.04".

Just a few years ago, that little sandwich was $1.00. You could load up the entire family for $5. This little instance- a simple sausage mcmuffin- is a perfect example of what's happening eveyrwhere, and has now caught up to a part of my world; Home Insurance.

I heard a really good term the other day stating that the insurance industry was "chasing inflation". Contrary to popular belief, that simply means that they waited (the insurance companies), and they waited too long. They waited too long to adjust rates, even though it was already happening. The average home claim (paid out) is up $62% from this time in 2019. And, on top of that, add a nasty year of catastrophic claims (Davison hail storm, Perry and DeWitt Tornados, etc) that creates the perfect formula for skyrocketing rates.

So what can you do? First, take it easy on the staff at your agency. They are all trying their very best to keep up with the demand and find you a better deal. YOU CAN ALWAYS REQUEST to have your rates shopped, particulalry at an independent agency. Second, there is a very good chance, almost 90%, that you may not find a better deal then what you've been presented. If you have had recent claims, this can be even tougher. Third, don't yell at your representative who's just passed this news to you. They are trying, and aren't loving their jobs at the moment. And finally, be prepared. Companies are really clamping down on roofs and any trees hanging over structures. Make sure you are disclosing that you have dogs and solid fuel heating devices. These are a few examples of why policies get canceled mid term- which means you are once again having to shop for new insurance in a very hard market. To get immediate relief, look at increasing your deductible and make sure the boat you sold last year (ya know, the one you forgot to call and tell your agency) or any other coverage that my no longer apply or be necessary.

The oulook: Everything gives at some point. In all my years in the insurance business, I've never seen it like this. If you insure with a carrier that currently has bottomed out rates, enjoy it; Theirs is coming too. You will see it at your next renewal. One company is reporting that every $1.00 that comes in, $1.23 is going out. That shows you the outlook for at least the next year.

The trend over the next year isn't favorable. However, I do see companies working to create more options for policyholders to help relieve these rates. More of an "A la Carte" type policy versus a bunch of coverages included. Changes are happening- and a good agent will guide you down that path.

Thank you for taking the time to read this.

Joe

09/15/2023

***SPOTLIGHT SEPTEMBER***

Every month I like to shine upon those folks that are out there making a difference. For September, I sat down with David Saenz of Midwest Home & Gutter. We had a very good conversation. Here are some highlights!

David has been in the consturction industry "forever". From roofing to remodeling, to patios and windows, he does it. In fact, he DOES IT ALL. Visit his page Home Home & Gutter, LLC- and you'll get the idea.

One thing I love about this guy is the love he has for his customers.
David believes that when building someone's addition or remodel job, or rebuilding a roof, or whatever their needs are- it starts with "building relationships". When you peek at his page, you will see the admiration his customers have for him.

David and his crew do a lot of insurance work as well. I asked him "David, if you could give my clients any advice, what would it be?" Without hesitation, David's passionate response is "Get the roof done first before you sink a bunch of money into anything else. I've seen so many people fix up a home and even do a full remodel and ignore the roof. Joe, they spend thousands. Then the roof fails one way or another, and the mess is devistating. One small leak can be a major repair. If the roof is marginal, it MUST come first, and done the right way".

If you are looking for a great contractor with an awesome crew, David is your guy. You can hit him up on messenger through his page or simply call him at 989-980-3019. Make sure you let him know that "JOE APPROVES!"

07/25/2023

Remember that $400 (per vehicle insured) everyone received a little over a year ago from your insurance company, on BEHALF of the MCCA (Michigan Catastrophic Claims Association)? Be prepared; Your auto rates are going up as the MCCA is "Recouping" those costs. Before you call and give your agent a hard time, remember, this is a fee the MCCA recoups, not the insurance company.

Below is a screen shot that one of our companies shows where that money goes. So right now, 1 vehicle is $122 per year. That adds up fast if you have more than one vehicle.

I do see the MCCA recouping the full $400 over time. I guess it was a nice jesture or "loan" if you see it that way. 😎

07/12/2023

🌧⛈🌧⛈🌧⛈
Flood Watch in effect for this evening and into tonight. Make sure the downspouts are attached, clear, and ready to work. Same with sump pumps- keep an eye on them if you do not have water detection. Water back up claims are no joke! They make a mess and most home policies are limited on the coverage. 1-3" of rain is expected from 8:00PM-2:00AM. Yikes!!!

https://www.localconditions.com/weather-saginaw-michigan/48601/alerts.php

06/27/2023

Stepped outside of the office today to grab lunch. I thought it was just gloomy outside. The smell in the air is awful. Eyes started to water. I cannot believe how much smoke there is! It still amazes me that our weather patterns can bring smoke in from so far away.

Smoke from wildfires burning about a thousand miles away will fill the sky over West Michigan on Tuesday.

06/01/2023

What makes a vehicle no longer eligible to be insured on a personal auto policy? Here's one of the most simple ways to understand the exposure:

The vinyl decal that advertises your business.

Once I make the recommendation to either remove the decal (the free advertising for your business) or move that vehicle to a commercial policy, the first fear is that it costs more. That's not always the case. In fact, it can cost you a lot less, especially if that vehilce is involved in a major loss and it's insured on a personal policy.

If something were to happen with your vehicle- that you use for your business- would you want your personal assets to be exposed from a liability standpoint?

Message me anytime for any insurance related questions you may have. As always, thank you for taking the time to read this post!

(Photo Credit: One Earth Pest Control, contact Nick for all your needs in Northeast Ohio / Southeast Michigan 419-356-0864)