Over the last 12 months, the United States has been hit with multiple, devastating natural disasters. From the East coast to the West coast, large cities to small towns, even the wildlife, have all been horrifically affected.
The question insurance agencies get most often: How does this affect my insurance rates?
Natural disasters can significantly impact your insurance premiums in several ways. You may be thinking, but my home/car/valuables weren’t impacted directly… Unfortunately, it does not matter if you were directly impacted by the event or not. Why is this and what are some of the factors that are involved?
- Location, Location, Location. If you live in an area of the country that is more prone to natural disasters: wildfires in California, hurricanes in Florida, or even storm surges on the coast, your insurance carrier may increase your premium to help account for those future losses.
- Reinsurance Cost. What is Reinsurance? To make it simple, reinsurance is insurance for insurance companies. Insurance companies often purchase reinsurance to help cover the cost resulting from large scale claims from natural disasters. With the rise in natural disasters over the last few years, reinsurance companies have had to substantially increase the rates they charge to the carriers. Because of this, the insurance companies have to follow suit, passing the increase onto the insured.
Ok, so now you know why it happens, but now you’re asking “well, what can I do about it?”
Simple!
An independent insurance agency, such as LD&B has the ability to “shop around” for you. We are able to quote with multiple carriers, working to find you the coverages that work best for you and your situation and hopefully also save you a little money for your Starbucks or Amazon addiction. We have a team of friendly and knowledgeable staff who would love to schedule a comprehensive review of your existing policies, whether they are with LD&B or not, to see what changes could be made. We want to make sure our clients are adequately covered in the event of a disaster.
Ready to schedule a meeting with one of our agents? Give us a call today!
