NC Agents, Why Are Homeowners Premiums Increased?

[Guest]

Other than the rate revision that will be effective July 1st, why are rates almost doubling? I'm writing about this in my blog on our website just need some feedback.

 

[russelltw]

1 - NC sticks out in the Atlantic and has potential to get hit by more hurricanes.
2 - Most insurance companies have taken a beating (hurricane, two tornadoes, ice storms, etc) over the last couple years with fire coverage in NC. During one of those tornadoes, we had a client's cow impaled by a 2x4...it went in about 1.5 feet into the animal's chest.
3 - Unlimited assessment exposure from NCJUA beach plan (this chased out Farmers several years ago). NCJUA was underfunded and continues to allow insurance companies to dump wind coverage off their policies and into the NCJUA beach plan. Hey, if you build a $1,000,000 house on the beach, you can bet the insurance will be expensive...
4 - Carriers are having trouble competing against GEICO and other auto only carriers. Auto is the profit, fire business is the bad stuff. That's why many carriers are requiring the auto with the home.
5 - Reinsurance companies are demanding NC carriers to clean up their books of business and exposure. They are also increasing reinsurance rates.

I will invoice you $50 for outlining your blog post...

 

[TeePee]

Awesome reply russelltw!!!!!!!

I will add a little more at a small fee of $1----STORM CHASERS! I can't tell you the number of my clients that call demanding to set up a claim for roof damages....because all their neighbors are getting new roofs, even though their roofs are 15-20 yrs old---*But but but my neighbor got their roof replaced by their insurance company*.

The average cost to replace a roof 5 yrs ago was $4K and now that same roof is costing about $9K...

OP, do the math and see why our rates are going up.

 

[russelltw]

Teepee, I would bet the company I used to work for was the one handing out new roofs left and right.

 

[winnersgetdinners]

also remember that materials get more expensive after huge events like that, and materials all around have gone up somwhere between 25-50% in the past few years.