The increase in both frequency and severity of natural disasters in recent years will have a broad impact on the insurance market. Although events, like the California wildfires and East Coast hurricanes, are regional, they affect the overall pricing of insurance worldwide.

Insurance companies use a portion of premiums to buy coverage from other insurers, known as reinsurance, to protect themselves from catastrophic events. The heightened risk of events like wildfire, flood and hurricanes, will cause reinsurance rates to skyrocket which will likely result in increased rates for homeowner and flood insurance. 

Here are a few tips on how to lessen the risk of having your car stolen:

1. Think of your insurance policies to cover large claims and, if possible, try to pay for smaller damage out-of-pocket. Frequent claims, even smaller ones, can lead to increased premiums.

2. Save on your premiums up-front by taking a higher deductible and put the savings in a fund to pay for small losses.

3. Consider adding protective devices to your home that will mitigate loss and reduce your insurance premiums. For example, adding an automatic water shut-off valve to your water main will prevent a large water damage loss and save 5% or more on your homeowner rates.

4. Review your policies with your insurance broker so you understand your coverage, deductibles and look for areas where you may be able to reduce your costs while maintaining comprehensive coverage.

For more information contact: 
Christopher F. McDonald | Amaden Gay Agencies
P.O. Box 5004 | 11 Gay Road | East Hampton, NY 11937 | P 631.324.0041 ext. 341 | F 631.324.0671 |