Why are premiums rising, and how can I control my insurance expense?

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In 2021 many insurance companies will be raising their rates 10-20% on homeowners policies.   Frequency of catastrophic weather events like windstorms (Sandy, Irene, Isaias), wildfires, and hurricanes are up 118%, and the damage caused by these storms is more severe than ever before. The typical quality home gets rebuilt with more expensive appliances, electronics, and furniture, which has driven the cost of an average claim from $25,000 to $64,000 over the last 10 years.    And since the better-quality insurance companies waive deductibles on claims over $50,000, the new, higher average claim cost means the insurance company now absorbs 100% of the typical claim!

Ways to reduce your premiums:

CREDITS-   Installing a permanent back-up generator or low temperature sensors onto your centrally monitored home alarm can reduce your premiums.   The most frequent cause of loss is water!    We strongly recommend adding alarm-monitored water leak sensors and an automatic water flow shut-off valve.   Here is a link to some helpful information on these systems that Chubb has published.   Contact your plumber about these systems. Link to Chubb Water…

We also encourage our clients to self-insure via higher deductibles, thus avoiding submission of small claims, which increase premiums.   Keep in mind, the better insurance companies waive the deductible on claims over $50,000.


Automobile premiums are also increasing.    This is being driven by two main factors.   There has been a significant increase in the number of accidents as a result of distracted drivers (primarily due to cell phones), so frequency of claims has gone up.    But there is also no longer such thing as an “inexpensive fender bender.”   Cars now have sophisticated sensors and cameras in the bumpers and windshields, so now repairs start in the thousands of dollars.

You can reduce your premiums by taking a Defensive Driving class online.    You need each driver to take this course.

If your child is driving and has good grades (A/B), send us a copy of the report card for a Good Student discount.    And let us know if your children are more than 100 miles away at school without a car.

Please contact us if you would like to discuss your premium increase.

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