Smart Insurance Tips

Because Natural disasters are now occurring with greater frequency and severity, they have a broad impact on the insurance market. Although hurricanes in the Southeast and wildfires in California and Colorado are regional, they affect the overall pricing of insurance across the country. Insurance companies purchase reinsurance from other insurers to protect themselves from catastrophic events. The heightened risk of severe weather like flood, hurricanes and wildfire causes reinsurance rates to soar, which ultimately results in higher homeowner and flood insurance rates for the consumer.

Here are a few important tips to manage your insurance premiums:

Use insurance policies to cover large claims only. If possible, pay for smaller repairs out-of-pocket. Frequent, smaller claims can lead to premium increases or policy cancellation.
Given current market conditions, expect your homeowner rates to go up more than usual. Your broker you may find ways to manage your premium increase. Consider taking higher deductibles and use the savings to pay for small losses.
Adding protective devices to your home will mitigate loss and reduce your premium. For example, adding an automatic water shut-off valve to your water main will prevent extensive water damage and save 5% or more on your homeowner rates.
Consider packaging or your Homeowner insurance with your other policies such Auto and Umbrella. “Bundling” your insurance can provide discounts.
Review your policies with your insurance broker so you understand your coverage and deductibles. Look for areas where you may be able to reduce costs while maintaining comprehensive coverage.