Risk & Insurance’s Post

https://lnkd.in/gSm52ztM Iowans, if you have been dropped by your homeowners insurance provider here is a great article on why that happened. Please message me with any questions!

This is one of the best articles I have read on this topic. An optional title - "The Cost of California Politics" or "Crisis Goes Unaddressed (again)" or perhaps "Warning, Warning, Is Anyone Paying Attention". We are at a critical juncture in the CA insurance market and the implications on the overall economy are massive. There are a laundry list of reasons we are in the position we find ourselves today, but if we want to stabilize the market, we must start allowing rate to flow through the market. It is that simple. More rate will bring more competition, which will bring more options, which in turn benefits all of us. There may be some short term pain, but it is better than where we are today, or where we will be if we push this off until 2025. Kicking the can down the road is not the answer.

This clarifies rules that were assumed, so it's a good thing to do now before a catastrophic loss. We hope it never gets put in motion, but every policy dropped by the admitted market is put on the backs of every homeowners insurance policyholder in California. "More than 419,000 properties are now covered by the FAIR plan, which has grown to become one of the state’s primary insurers. Its risk exposure is nearly $400 billion as of June 30, up 26% in six months. Under new details of a plan first announced in July [and after the FAIR plan has exhausted all of its reserves, reinsurance and catastrophe bonds], insurance companies will be required to cover half the cost of losses of up to $2 billion in total claims — $1 billion for residential and $1 billion for commercial. But the other half can be recouped from consumers through a surcharge if the insurance commissioner gives approval." #insurancecrisis #california #wildfire https://hubs.ly/Q02QrZRr0

This clarifies rules that were assumed, so it's a good thing to do now before a catastrophic loss. We hope it never gets put in motion, but every policy dropped by the admitted market is put on the backs of every homeowners insurance policyholder in California. "More than 419,000 properties are now covered by the FAIR plan, which has grown to become one of the state’s primary insurers. Its risk exposure is nearly $400 billion as of June 30, up 26% in six months. Under new details of a plan first announced in July [and after the FAIR plan has exhausted all of its reserves, reinsurance and catastrophe bonds], insurance companies will be required to cover half the cost of losses of up to $2 billion in total claims — $1 billion for residential and $1 billion for commercial. But the other half can be recouped from consumers through a surcharge if the insurance commissioner gives approval." #insurancecrisis #california #wildfire https://hubs.ly/Q02QrFNG0

Why is Homeowners Insurance becoming less affordable in 2024? Check out this article from InsuranceBusiness.com https://lnkd.in/gFdRVcpQ

Good article from Burns and Wilcox with knowledge on how clients should view insurance policies moving forward. -“With the state of insurance as it is right now, start looking at insurance more for the large, life-altering losses and not as much as the maintenance policy that it has been looked at as for so long.” 

In response to recent years of high payouts, particularly for wildfire losses, insurance companies have declined to renew policies and stopped underwriting in high-risk areas of California. This has led to much higher enrollment rates in the FAIR Plan, which was only ever meant as a bridge for homeowners until other insurance solutions became available. Read our recent article by Lead Advisor, Daniel Smyth, CFP®, CPWA® https://lnkd.in/gwrKJQhD

Michigan homeowners insurance is a crucial investment that protects your property and belongings against various risks, including fire, theft, and natural disasters. However, determining the appropriate coverage and navigating the complexities of insurance costs can be confusing without guidance. 𝗖𝗮𝗹𝗹 𝘂𝘀 𝗮𝘁 𝟮𝟰𝟴-𝟯𝟲𝟮-𝟭𝟯𝟭𝟯 #homeownerinsurance #insurance #homeowner

"Big changes ahead! 📣 The Hartford joins State Farm and Allstate in discontinuing new homeowners’ insurance policies in California starting February. What does this mean for the Californian real estate market? Find out in our latest blog. 🏡 #InsuranceNews #RealEstateUpdate #CaliforniaHousing"

The world of Homeowners Insurance in Florida~ Rate increases have slowed thank the lord! Over the past six months, the average rate increase request for homeowners insurance is 1.2%, a vast difference from recent years of requests that were as much as 56%. A year ago, the 30-day average rate increase request from carriers was 7.6%. Reinsurance: Early results from a recent data call with insurers show that reinsurance costs for Florida insurance companies decreased an average of 1.7% from 2023 – the first decrease in years. Policies in force: As of Q1 2024, 7.43 million residential insurance policies were in force in Florida. Some 83% of those are written by admitted property insurers, as opposed to surplus lines companies or the state-backed Citizens Property Insurance Corp. Recent data from the Florida Surplus Lines Service Office show, however, that for personal and commercial coverage, surplus lines’ share of the market has continued to grow in the last six years. * Source - Insurance Journal