This article is meant to be a simple explanation for why home insurance rates are on the rise and some helpful hints on how to lower home insurance cost without sacrificing coverage.
I am not saying I agree with the logic (of the insurance companies) for all the below reasons on why home insurance rates have and are going up, but some make sense.
To start I think it is important to understand the basics of how insurance works. Simply put, everyone pays premiums into a bucket to hedge against the risk of a loss. So that when a percentage of those people have a loss, they can pull out a much larger amount from the bucket than they put in to either fix or replace what they lost. This is very simplified explanation, and now that we have covered that, below are a few big reasons home insurance rates have gone and are going up.
2. Recent hurricanes (obvious reason, I know)
Irma alone caused close to 8 billion in property damage in Florida, and Matthew causing 1.5 billion. These considerable losses create a void in insurance companies reserves (the amount they are required to keep to be able to pay out future claims), and so must raise rates to fill the void or face possible solvency by the state.
3. Reinsurance rates go up.
Believe it or not insurance companies have their own insurance policies called re-insurance (crazy right) that kick in after major catastrophes to help cover some of the losses that would otherwise cripple the insurance companies. These policies are very expensive and once a state has had a recent catastrophic loss (or losses) these rates go up, and soon home insurance rates follow.
Simple solutions to help lower your rate.
2. Lower contents coverage
The standard amount of contents coverage on a home policy is 50% of the dwelling amount, so if your home is insured at $200,000 your contents coverage would be at $100,000. Once you consider the policy caps on certain items like jewelry, art, etc. (which are typically capped at $1000 to $2500 depending on your policy terms). Some homeowners simply don’t need 50% of their dwelling amount for contents.
3. Shop around.
Like everything else in the world no insurance company is a one size fit all. Every company has an appetite of what type of risk they are looking for (age of home, zip code, personal insurance score, etc.) and simply finding that right match can save hundreds. Independent insurance agencies are a great resource for this since they typically are contracted to write for many home insurance companies (usually 10 or more) and can help guide you to the right fit while also educating and consulting you along the way.
I hope this article helps! I tried to keep it as unbiased as possible. If you have any further questions I would recommend you contact your local independent insurance agent, or us :) for we would be more than happy to help! http://www.wellcoveredinsurance.com/
About the Author:
Richard Dixon is the owner operator of Wellcovered Insurance a local independent insurance agency located in Orange City, Florida.
When we think of safety in our homes, we often think of external factors. Natural disasters like earthquake, storms, floods, or even animal attacks spring to mind. We will even secure our homes from burglars and other criminals.
However, it is often neglected that our homes contain many hazards. Like the external factors, these pose a threat to our family's safety. Here are some of the home hazards you should watch out for.
Hello, and thank you for reading. This article is designed to give a quick concise explanation of how the different hurricane deductible options work.
Percentage Hurricane Deductible (most common)
First (and I believe the most mis-understood) is the percentage-based hurricane deductible. The most common hurricane deductible for home insurance in Florida is the 2% hurricane deductible. That 2% does not mean 2% of the damage caused by the storm. The 2% stands for 2% of your dwelling coverage (or Coverage A). Simply put if your policy covers your dwelling at an amount of $200,000 your hurricane deductible would be 2% of $200,000 which equates to $4,000.
Flat Hurricane Deductible (less common)
Less common but becoming more popular (especially with the recent hurricane activity in Florida) is the flat hurricane deductible. A flat hurricane deductible is just that, a flat amount (usually $500 or $1000). This is easier to understand because it is just a flat amount.
Pros and Cons of Percentage Based and Flat Deductibles
Percentage Based Deductible:
I hope this article helps! I tried to keep it as unbiased as possible. If you have any further questions I would recommend you contact your local independent insurance agent, or us :) for we would be more than happy to help!
About the Author:
Richard Dixon is the owner and operator of Wellcovered Insurance, a local independent insurance agency located in Orange City, Florida.
For every business, the end goal is always profit. You want to maximize the money coming in and lessen the expenses that you pay. It sounds simple and basic, but there is so much to it. You may be able to raise your revenue, but if your costs increase as well, then that is not a good sign.
As a business owner, you will always look for ways to cut costs without sacrificing your product or service. You also want to minimize the effects of the cost-cutting to your employees. Here are some tips you can do to cut your costs now.
There are a lot of benefits to owning a clean and well-organized home. Of course, there are obvious benefits. It is great for your home's aesthetic. A clean and organized home shows off the beauty of your home. Removing the clutter also makes your home safer. You can avoid tripping over obstructions and also avoid items falling on you. Of course, the biggest advantage is getting on the good side of your spouse because you cleaned. However, did you know a clean home can also make you healthier?
Keeping your car clean do not only make it look nice but also keeps it new longer. A well maintained and clean car will last you longer and perform better. We spend a lot of time in our cars, and we want to stay in a nice and clean environment. However, when you think of cleaning your car, you most likely picture it being washed down on the outside. What many tend to forget is it is important to clean your car's interior as well. It is where you stay, and you want to make sure it is clean. You would not want to attract pests into your car. Make sure to follow these steps below to keep your car interior clean.