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A lot of people are noticing that their homeowner's prices are increasing when they get their renewal.  Many say, "I have never had a claim, why did my rates go up."  I will say this after being in the insurance business over 40 years, selling life insurance, car insurance, home insurance, business insurance and health insurance, these are unprecedented times when it comes to home insurance.

The cause of these rate increases, can be summed up in one word.  "Weather".  Weather related claims have dramatically escalated over the last few years to a point where many companies that sell home insurance are bleeding red ink each year.
At a recent company meeting I attended, the regional president of Liberty Mutual Insurance said they are hiring Meteorologists to try and examine weather patterns and pinpoint where losses are coming from.  Liberty Mutual owns both Safeco and Indiana Insurance companies, both of which we proudly represent. 

At a meeting with Standard Mutual Insurance, the president quipped, that "In the old days, the premiums of many paid the losses of a few.  Now it seems the premiums of many pay for the losses of many."  To put in prospective those comments several years back, hail claims were far and few between.  Now it seems almost every year we are subjected to violent storms with strong winds and hail.  There is definitely a change in the weather patterns.  One company thinks we are in a 15 to 20 year cycle of this type of weather.

Just with hail alone possibly pounding a entire neighborhood at anywhere from $7,000 to 25,000 a roof it gets pretty expensive. Insurance companies can't afford to continue providing coverages for the low prices they have been.  Some of the actions we see happening to help mitigate the bleeding from the insurance companies is higher deductibles for wind and hail.  Some companies are going to Actual Cash Value coverage on roofs which means they are going to start depreciating them based on their age.  Another thing that has been the case in Florida is that companies are offering or going to percentage deductibles.  An example of this would if you had a 2% deductible on a $200,000 home, your deductible would in effect be $4,000 for any claim for wind and hail.

As always at Bolander Ianni Insurance we are here to help you with your Indianapolis home insurance needs and explain all the options and what is going on in the stormy world of homeowner's insurance. Gives us a call at 888-360-9150 today!
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