Friday 6 January 2012

Severe weather of 2011 will increase the price of home insurance in ...

If you own a home - the cost of insuring it likely will be going up.? The reason?an historic outbreak of severe weather in 2011.

Tornadoes hit the southeast, including the Tri-Cities region on April 27 and 28.? The National Weather Service says twelve people died in the Tri-Cities, and that outbreak was one of just several that made 2011 an historic year for storm damage.

However, price increase will impact even those who saw no storm damage at all.

Bill Richards runs Community Insurance an independent agency in Greene County.? The April tornadoes here resulted in more coverage claims, than any other event in his 19 year career.

"I would say 50 of our own clients were, and for us, that's a lot, ? said Richards.? ?We're a small office."

Richards says many insurance companies are concerned because the balance is out of whack--more money going out than coming in--and it's been that way for years.

"One company told me their fire losses were up 55-percent in the last three years,? said Richards.? ?So, it's more than just the storm.? It's kind of the straw that broke the camels back."

That means premiums are on their way up.? The price will vary by carrier and individual policy.? Richards says, locally, some homeowners reported increases as high as $300 a year.? That's not welcome news to neighborhoods still struggling to rebuild.

"Does that scare you as a homeowner,? said Shelton.? ?"Sure it does.? It's already outrageous trying to get coverage for natural disasters and things like that."

Richards says, generally speaking, insurance companies need to do this to survive.

"There's other companies that are in a fairly strong position, and even though this particular year they're unprofitable in this line of business, as a rule for the last 10 years they've been profitable,? said Richards.

The southeast tornado outbreak contributed to these price increases, but the ripple effect will be nationwide.? The amount will depend on which insurance company covers your home.

Homeowners won't know until they sign a new agreement when the spike in their bills will take place.

Richards says customers should check the fine print.? Some companies will change the way they underwrite this year, which means the increase may depend on the size of your home, the age of your roof or other factors.

Source: http://www2.tricities.com/news/2012/jan/05/home-insurance-prices-increase-2012-after-historic-ar-1589505/

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