As Home and Auto Insurance rates rise across the insurance industry, customers face the triple threat of higher premiums, higher claims costs, and, worst of all, a higher chance of being underinsured.

Here are some of the reasons why rates continue to rise:
        - Building costs up 32%
        - Delays in materials, like windows
        - Longer temporary housing time
        - 40% increase in used car prices
        - Repairs taking 2x longer
        - 30% increase in rental car costs
(Source:  Hanover Insurance, Spring 2024)

To keep insurance accessible to individuals and families, our approach to home insurance must evolve from a maintenance policy to a shared contract that helps you, as customers, actively protect your property in partnership with and support from your insurance company. Here are some things you can do to reduce your risk of a loss.

1. Take proactive steps to protect and maintain your property. Focus on roof maintenance — the home’s first line of defense against the weather — as well as trimming trees close to the home, clearing gutters to avoid ice dams, and any general maintenance that the outside of your home needs.
   
   
2. Install risk mitigation devices, such as automatic water shut-off devices, water sensors, electrical monitoring, temperature monitoring, and whole house generators, as well as various alarm system options and smart home detectors. There is a lot of new technology available to help you protect your home.
   
   
3. Consider some coverage adjustments. Ensure your home is insured to value. Consider higher deductibles to help lower overall rates but result in higher out-of-pocket payment if there is a loss.

 
Risk Mitigation devices are an affordable way to monitor your home and guard against large losses. Discounts on these products are available through Hanover Insurance Group's Partners In Protection site. These discounts are available to clients with other insurance carriers as well.  
You are not limited to these options as there are many options available to you via Amazon or other retailers.  
 
If you choose to install one or more of these systems, please let us know. You may be eligible for discounts on your home insurance premium.  
 
We are here for any questions you may have. 

High water is in the news for all the wrong reasons.

We like to pretend flooding is someone else’s problem. But flooding can hit anyone, anywhere, even if you think your home is high and dry.

Check out these inundating facts about a huge problem:

• We’re Number One! Flooding is the most common natural disaster in the world.
• All Are Welcome! Flooding can hit anywhere—25% of floods happen in low to mid-risk areas.
• Rising Tide Lifts All Boats! Current predictions anticipate damage from flooding to rise by 67% in the next 30 years.

It might be a great time to check out flood insurance if you haven’t done so already. Flooding is a big concern and will only become more common in the future. But with a little protection, you can ride out the storm.

​All of us are feeling the grip of inflation. Building materials costs have spiked over the last 2 years. Supply chain disruptions and labor shortages are causing major delays in construction projects. As a result, it now costs more to rebuild your home than it did before. 

When was the last time that you checked your policy limits? Are they high enough to cover a 26% increase in building costs? If not, then you have to pay the difference out of pocket.
 
Hanover Insurance Company shared some of the numbers behind inflation in a recent post.  They recommend that policyholders consider

• Increasing coverage to avoid potential gaps in the current market
• Include the cost of any recent renovations in your policy limits
• Consider higher deductibles to help offset the cost of policy limit increases

 
The insurance industry is working to help policyholders stay ahead of the curve. Many carriers are running Replacement Cost Estimates on covered properties and adjusting property limits as needed. 
 
They are also increasing the Inflation Guard percentage on Property policies as well. Inflation Guard endorsements increase Property coverage limits by a specified percentage (usually 4%) at each renewal. Lately, carriers have increased Inflation Guard percentages to 8% and even 12%. 
 
Now is a great time to review the Dwelling limit (Coverage A) on your Homeowner's policy.  Review your policy renewal to see what changes are being offered and whether they are adequate to properly protect you. 
 
Let us know how we can help!