Understanding the Changing Dynamics:

The escalating cost of claims over the past two years has forced carriers’ hands, pushing them to either raise premiums or withdraw from certain markets. In some states, carriers have been met with rate increase application denials, compelling them to halt new business entirely.

Impact on Policyholders:

Home and auto insurance policyholders are experiencing the direct impact of these changes. Premiums are surging, and for those who haven’t seen increases yet, it’s a matter of time. The adjustments are driven by operational necessity rather than personal factors, such as previous claims history.

Factors Driving Cost Escalation:

Several factors contribute to the cost escalation:

• Home rebuild costs have surged due to rising material and labor expenses, compounded by supply chain disruptions.
• Auto repair costs are escalating due to pricier auto parts and advanced technology features integrated into vehicles.
• Soaring medical care costs have elevated bodily injury claims stemming from auto accidents.
• Escalating litigation expenses and settlements are becoming commonplace.
• The post-COVID landscape has seen a spike in both the frequency and severity of auto accidents and fatalities.
• Reinsurance, the cushion against catastrophic loss, is nearing capacity in several markets, contributing to unsustainable rate increases.

Looking Ahead:

The industry anticipates ongoing pricing adjustments at least until 2024. The impacts won’t be eternal, but they’re here for now.

Navigating the Challenges:

In this challenging insurance landscape, homeowners and drivers can take proactive steps to navigate the situation:

• Opt for higher deductibles to potentially save on policy costs.
• Explore safe driving telematic programs for discounts.
• Review available discounts with your agent to maximize savings.
• Ensure continuous coverage to avoid more stringent reinstatement requirements.
• Consider bundling auto and home insurance for added benefits and stability.
• Maintain tenure with a carrier for long-term benefits.
• Adhere to traffic laws to avoid tickets and associated rate hikes.
• Strategically use your insurance coverage for catastrophic losses, absorbing small claims when feasible.

Remember, your insurance agent is here to guide you through these changes. They are committed to supporting you despite facing the same challenges.

The changing landscape of home and auto insurance underscores the importance of proactive steps and understanding the factors contributing to rising costs. By aligning your approach with the shifting dynamics and relying on expert guidance, you can navigate these changes while optimizing your coverage and cost-saving opportunities. Call us today at Statewide Insurance Agency to learn more and evaluate your current policy.

The post Navigating Changing Tides: The Home and Auto Insurance Industry’s Response to Rising Costs first appeared on Statewide Insurance Agency.

If you live in a rental home or apartment, chances are you don’t have the proper insurance. Despite the fact that rented homes are more likely to be burglarized than owner-occupied properties, nearly 60 percent of renters don’t have a renters policy.

Why does it matter?

“If you rent a house or apartment and think that your landlord is financially responsible when there is a fire, theft or other catastrophe—think again,” warns the Insurance Information Institute*. “Your landlord may have insurance to protect the building you are living in. But your landlord’s policy won’t replace your personal possessions or pay for your living expenses while the building is being repaired. The only way to protect yourself financially against disasters is to buy a renters insurance policy.”

Renters insurance covers your possessions, liability and additional living expenses. Let’s take a look at these three types of protection:

Possessions

Standard renters insurance protects your personal belongings against damage from fire, smoke, lightning, vandalism, theft, explosion, windstorm, water and other disasters listed in the policy. Floods and earthquakes are not covered.

To decide how much insurance to buy, you need to know the value of all your personal possessions—including furniture, clothing, electronics, appliances, kitchen utensils and even towels and bedding. The easiest way to figure this out is to create a home inventory, a detailed list of all of your personal possessions and their estimated value.

There are two types of renters insurance policies for your possessions:

Actual Cash Value pays to replace your possessions minus an amount for depreciation (the reduction in the value of items due to age and use) up to the limit of your policy.

• Replacement Cost pays the full cost of replacing your possessions (with no deduction for depreciation), up to the limit of your policy. The price of Replacement Cost coverage is about 10 percent more than Actual Cash Value coverage, but can be well worth the additional cost.

Note that a standard renters policy offers only limited coverage for items such as jewelry, silver, furs, etc. If you own property that exceeds these limits, it is recommended that you supplement your policy with a floater. A floater is a separate policy that provides additional insurance for your valuables and covers them for perils not included in your policy such as accidental loss.

Liability

Standard renters insurance policies also provide liability protection in the event you or members of your familiar cause injury to others or damage their property.  It also pays for damage your pets cause.

If you are sued, the liability portion of a renters policy may pay for both the cost of defending you in court and for court awards, up to the limit of the policy. Liability limits generally start at about $100,000. Your policy may also provide No-Fault Medical coverage. If visitors are injured in your home, regardless of fault, you can submit their medical bills directly to your insurance company. You can generally get $1,000 to $5,000 worth of this coverage. It does not however, pay medical bills for your own family or your pets.

Additional Living Expenses

Many people are pleasantly surprised to learn that Additional Living Expense (ALE) coverage is typically included in a renters insurance policy. If the home or apartment you are renting is damaged or destroyed and you need to live elsewhere while it is being repaired or rebuilt, renters insurance will cover your additional living expenses—namely the difference between your regular living expenses and the additional costs incurred by having to live away from your home, such as hotel bills, temporary rentals, restaurant meals, etc.

Need help deciding what coverage is best for you? Contact Statewide Insurance Agency today. https://okstatewide.com

*Insurance Information Institute, September 30, 2009

The post Renters Insurance – Cheap Oklahoma Quotes first appeared on Statewide Insurance Agency.