Very Important Information about Your Insurance
Filed under: Financial Planning
Today I talk to Tina Caracciolo with Insurance All Stars; I asked her to help me with this video to address a few questions about insurance options in the area. In the last few days, myself and two clients have experienced concerns about insurance coverage due to calls to switch companies or increased premium notifications.
What is Happening in the Insurance Industry?
Our world has been turned upside down this year. All of the wildfires in Southern California have affected the insurance industry. Unfortunately, you are going to see rate increases. There is no way around it – the insurance companies have said that these natural disasters are affecting the business model. Because of the wildfires, we are going to see increases across the board.
Changes Coming in January
Most people will feel it in January when all of the renewals come through. You can expect to see increases that affect all carriers across the board. In certain zip codes, we are seeing insurance shutting down, which means that you may not be able to get insurance in the general market for these zip codes.
This is one of the reasons my family switched insurance providers years ago – Tina helped us shop all the markets to find who is the best provider. A few times, our insurance coverage has moved to different insurance providers.
It is beneficial to be with a broker (someone who offers more than one insurance company), because of the ability to adjust the plan or coverage if needed. If one insurance company is shutting down a zip code or the premiums have gone crazy, then we can shop the policy and try to get another rate.
Effects on Premiums are Unavoidable
Fires, floods, and even hurricanes in other states are all affecting the insurance industry. It’s hard to say why these things are happening, but the effects on premiums are unavoidable.
One important thought: keep your eyes open and know that it’s not always about premium. The other side is that you need to make sure you are adequately insured. If something happens, it is essential that your insurance policy is sufficient to cover the value of your home.
Reach out to Tina if you have questions about insurance coverage. And I’m always here to help if you need details about mortgages or financing.