Today I wanted to introduce a great client and friend of mine. John Turner is a 38-year veteran of the insurance industry who met with me to discuss some of the intricacies of homeowners insurance.
First of all, today’s homeowners insurance industry is more regulated than it has been at any other point in its history.
It’s also more politicized—meaning politics have a greater influence on rates than business. This means insurance carriers currently can’t make their own rate decisions.
Right now, carriers simply aren’t enthusiastic about accepting new clients. If you’ve had a loss in the last three years, you may not be able to get any quotes at all.
Underwriting is now a data-driven process. Small claims tend to lead to bigger claims. As a result, companies may stop offering insurance to people with small claims.
There are a few things you can do to put yourself in the best position possible. As John has emphasized, it’s important to choose your agent and your company wisely.
Ideally, you want to work with people who you trust and who offer the best possible combination of product, price, service, and financial stability. Shopping for insurance every year can really add up, so it’s always a good idea to find a company you trust and stick with it.
Additionally, choose the highest deductible you can afford and then double it. Submitting a small loss is something you really want to avoid. Insurance is best used on more serious losses. The more losses you have, the higher your insurance will go.
It is important to stay on top of things. With inflation, your coverage will simply not hold up forever. You should always review your insurance annually, at least. Making sure you are always aware of where things stand will eliminate the potential for costly surprises down the road.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.