06/23/2023
Got a piece of advice for consumers regarding their insurance. Especially home insurance…🤔
The insurance marketplace is crazy right now. If you’ve ever seen the meme of the little dog in the burning house saying “this is fine.”
That is literally what it’s like.
Insurance carriers are taking extreme measures to make sure they remain solvent - notice I didn’t say profitable…I said solvent. 💰
So what does that matter to you as the consumer?
Well nothing really, and everything at the same time. This ultimately affects the price you pay, the coverage you are offered etc.
But today, I want to give you advice about claims.
Now I’ll preface this and say ultimately - I don’t care what you do.
You pay for insurance, use it as you will. I’m just a dude who posts random insurance stuff on Facebook - what do I know?
For years, our agency has been a place people landed when they got in claims trouble. Had a few too many claims for big red, or little red, or the other red company?
(There are a lot of red companies)
You end up at my office. We find you coverage and you’re on your way. All nice and easy.
But, this also allows me to see trends in the market - and there is a doozy of a trend coming down the road.
It use to be, 3 claims in 3 years got you in trouble. That’s when insurance companies started non renewing your coverage. (Which is bad if you’re not aware)
Now, the market has tightened up so much that I’ve literally seen people be cancelled….for having NO current claims…
None. Zero. But they are “likely” to have a claim - so the carrier finds a reason to get off the risk.
Not cool, bro!
1 claim, going to make it tough. 2 claims, get your wallet out! 3 claims…
Have you considered renting? 🤣
But here is the point - knowing the market is like this - you, as a consumer, have to protect yourself. What is one way you can do that?
Let’s talk claims.
Every single day I see people’s claim history and every single day I see people with $1,000, $2,000 payouts (or worse $0) on home insurance claims.
EVERY. SINGLE. DAY.
Stop that. Insurance is for catastrophic loss.
Catastrophic.
Getting 6 shingles replaced on your roof is not catastrophic. A tree falling on your fence is not catastrophic.
Things like this.
But I’ll say this again - do what you want, you pay for it. Apply the coverage how you will, I’m just some dude.
But don’t say I didn’t warn you…
Because here is what is going to happen and is already happening…
The insurance marketplace is tight. REAL TIGHT. If you have claims on your record, getting coverage can/will be a challenge.
Your current company can, and sometimes will, non renew your coverage for these small claims. Any claim is a claim in the insurance world.
This will then force you out into the insurance marketplace to find new coverage.
This is where you’re going to find it’s hard to even get coverage until the market corrects.
Insurance company’s will view you like that Taylor Swift line…
“It’s me, Hi! I’m the problem it’s me.”
That $2000 claim can easily end up costing you $2k a year in increased insurance costs.
Now, don’t misread this post. If your roof is torn off by a storm…file a claim. If you have a fire, file a claim…don’t be silly. But those small little items…
If something happens at your home I need you to ask yourself…
Is this catastrophic? If the answer is yes, then proceed.
If the answer is no and you file a claim, don’t be surprised when there is a catastrophic hit to your bank account to get insurance.
If you don't know if you have damage to your roof, then check with a professional.
The guy that just stopped by because he is "replacing roofs in your neighborhood" is likely going to get you a zero dollar claim. Get an opinion from a legitimate local roofer!
This market is weird and never seen before. It has to get better. But for now, get an agent that will explain this to you and help you make decisions regarding claims.
Also, any agent that tells you anything above is not true, Is lying or oblivious - neither of which is a quality you want in an agent.
If you need help understanding give us a call and let us help you navigate through this tough time. 706-705-5004
