We have been talking about this all year, but it is an important change that you as a homeowner need to know. Due to the increased costs for nearly everything in our country right now, we are seeing changes to insurance policies as well as our other essentials in our lives.
One of the main factors on your homeowners insurance policy is the Dwelling Coverage (Coverage A). Also known as the Reconstruction Cost, it is what the insurance company will pay out in the event of a total loss of your home to get it completely rebuilt. It also covers if the home is damaged to get everything fixed, but the main consideration is when a total loss occurs.
Due to increased material and labor rates, I have personally seen the Dwelling coverage increase by nearly $100,000 on a policy for a higher value home which caused a 30% increase on the policy at renewal.
While the Dwelling coverage is not the only factor in increasing rates, it is the largest. Insurance companies across the board have had a high number of claims over the last year with more bad weather causing more damage. So insurance companies also take their losses into consideration when determining their rates.
There are a huge number of factors that go into getting insurance rates that include: Your personal insurance score, claims history, credit score, to the statewide losses, specific zip code data, probability of loss by area and individual information, etc.
Insurance is based on risk pools. And those pools are split into different segments (Auto and Home, Specialty Policies, Commercial, etc.) to try and keep rates as stable as possible while also looking at historical data to make the best prediction on losses and potential claims payouts.
This seems like nothing but doom and gloom and I promise you it is not. But it is important to understand HOW insurance companies get their rating scores so you as the consumer know what to look for and to ask your agent for your policies.
,I found a great article by Farmers Insurance to help go into a little more detail on the increasing homeowners insurance rates that I wanted to share with you. I did not write this article and take no credit for anything within it. But it does have some great details that I thought would be beneficial and my job as a Licensed Insurance Agent and Advisor is to try and spread as much information as I can so you are able to make the best decision for your family's protection.
As a homeowner, you have options. From doing a policy review with your current agent and making sure the specifications of your home are listed correctly to maximizing all the discounts offered can add up to hundreds of dollars or more in savings each year.
And if you would like a free, no obligation review of your current policy feel free to visit app.usecanopy.com/c/stephenturner, stop by in person, or give us a call at 678-719-0678 and we will gladly assist.
Lastly, if you or someone you know is purchasing or re-financing a home then it is the perfect time to see what your options are and ensure that your most valuable asset has the right protection and the right agent for your specific needs!
But these changes have impacted more than just the way we live. It has changed HOW businesses operate. From changing hours to safety regulations that we have never seen before. But these impacts have also changed the way the insurance industry is operating, and it is critical that you know about this so you can understand how to properly protect your family.
Many people have either heard a rumor or wondered how the COVID vaccine might impact your ability to get life insurance. At the present moment, there is nothing in any policy that I have seen that states there are any changes to a life policy whether the person had the vaccine or not. If someone were to unfortunately pass away, their life policy (If they had one) would still pay out. And there are no changes to underwriting when getting a new policy.
Why is this important?
Because whether you have gotten the COVID vaccine or not, you still NEED to have life insurance! And know that you now it doesn't have any impact on your eligibility or payout restrictions, you can get options to fit your unique situation.
This is a very emotional topic for me, and if you will allow me a quick moment I would like to share a personal story of mine:
When I was 16 years old, my aunt was killed in a car accident. She was carpooling with a friend to work just like any other day for her. She was only 2 years away from retiring and her and my uncle had already made plans to travel the country in a camper. But because of the selfishness of someone completely out of their control, that plan was gone in an instant. The driver of the other vehicle in the accident had decided to go fishing after his shift instead of going straight home. He fell asleep at the wheel after fishing and crossed over 2 lanes of traffic hitting my aunt and her co-worker head on at over 50mph. My cousin, who is four years older than me, was in the Army and stationed in Germany at the time. So I was the one who stayed by my uncle's side helping as much as possible with arrangements and everything else.
I was with him the day the life insurance check came in for my aunt, and although he was already retired and had stable income, that check allowed him to focus on what was important, not financial stress with the funeral. He was able to grieve and be with family and remember the great times. I saw this first-hand and will remember that day the rest of my life.
You can see above the AVERAGE cost of a funeral in 2021. But take notice, that does NOT include the Cemetery and Memorial costs. This also does not include any debts that may still be in place such as a mortgage, auto loan, credit cards, personal loan, etc.
The last thing anyone in your family needs is to have the added stress of financial hardship on top of the loss of a loved one.
And life insurance can also be a great investment vehicle to help build value to pay for things like college tuition or retirement. There are a wide variety of products that can all be tailored to fit your specific situation.
But YOU have to take the first step to ensuring your families financial future!
There are many factors that go into the price of a life insurance policy. The main one's are: Age, Amount of Coverage, Length of Coverage, and Medical Conditions.
Fortunately, we have plenty of options for all of these factors. So no matter what your current situation is, we can find something for you. To date, I have never been denied a life policy. We may have had to go to a different carrier, but I have not come across a situation yet that I have not been able to help with.
As a licensed agent and insurance advisor, my only goal is to make sure your family has the financial security they need so they can focus on family after the loss of a loved one. I will find out a little about you and what it would look like to have that financial security so I can go to work for you and look at all the options available.
Depending on your goals and your budget, we will tailor everything until we find the right fit for you. Because life insurance is so specific, you cannot afford to get a 'one-size-fits-all' policy, and that's what I am here for!
So please feel free to call or text me at 678-719-0678, or shoot me an email to email@example.com so we can set up a time to find out your options. And please check out the short video below on life insurance posted by the Insurance Information Institute. It provides some great insight into life insurance and the benefits of having a policy.
The Stephen Turner Agency does not own and did not create this video. All credit is given to the Insurance Information Institute. Video source: https://www.iii.org/video/the-is-on-insurance-life-insurance
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Once those filings have been reviewed and signed off, you will start seeing higher auto and home rates at your next renewal. When any insurance company starts paying out more in claims there typical response is to increase rates for new and existing customers. Typically the existing customer will see a smaller increase than a new customer switching over to that carrier, but there is still going to be a state-wide level increase regardless.
What can you do about these increases?
The best thing to do is start shopping your rates around to make sure you are still getting the best possible price AND coverage for your specific situation.
**A warning I will give you, as I have seen it hundreds of times over the last 18 months, is to not get fooled into slashing your coverage's when switching carriers.**
When you get a quote, the safest thing you can do is to have your current declaration pages available to compare with. Since the onset of COVID, so many people have dropped from 100/300 in liability coverage ($100,000 per person/$300,000 per occurrence) to the state minimum of 25/50 in Georgia. Whether the agent who wrote that policy explained that to you or not is a big deal for two reasons.
We take protecting families seriously. And our role is to be an advisor, not a salesperson. We find out what your specific needs are and make sure to give you options based on that, not a 'one-size-fits-all' policy that could leave you vulnerable. Additionally, if we are not the best fit right now, we will be the first ones to say so. No slimy sales tactics or high pressure junk. Because in the insurance world we know that just because it may not be the best right now, doesn't mean it never will. As your life and situation changes so do your insurance needs, and we are here to serve you and show you the level of service you should have been receiving all along from your agent.
Being a veteran, my first concern is treating people right and at the very least explaining how your policies work so you walk away with a better understanding. If we are able to help you and are entrusted with protecting your family, you become part of our family. And there is nothing on this earth that will stop me from making sure you get treated the way you should and are taken care of when you need us the most. So please feel free to reach out anytime and we will gladly answer any questions you may have and even give you a free policy review so you know what your current policies cover (and more importantly, what they DON'T).
Want to make sure you have the right protection for you family? Call us today at 678-719-0678 or click or scan the QR code below to get a free quote. We make sure everything is set up correctly up front so you never have to worry when something happens!
You have nothing to lose. So get your quote today and see the level of service you should be receiving from your insurance agent!
This blog will have articles written by members of the Stephen Turner Agency as well as other relevant articles we find. We want to ensure you have the most up to date info on the insurance industry so you can make the best choices for your family!