By now, many of us have noticed the trend of prices continuing to be on the rise. The insurance industry is continuing to see economic challenges and inflation impact all insurance companies. As a result, individuals and businesses continue to see their insurance premiums continue to rise.
Why are my premiums going up when I haven’t filed a claim?
As explained by the Insurance Information Institute, “The property/casualty insurance industry cycle is characterized by periods of soft market conditions, in which premium rates are stable or falling and insurance is readily available, by periods of hard market conditions, where rates rise, [and] coverage may be more difficult to find…”
The Impact of Hard Market Conditions
In the current hard market conditions, rates are rising and coverage options are limited. Insurance companies are experiencing more frequent claims and higher claims payouts, which hurts their bottom line. These are assumed to be a reflection of how much longer it takes to repair or replace damaged property at higher costs and the increase of disastrous weather events.
Companies Reducing Coverage Area
Many insurance companies are also reducing their coverage they will write for certain policies. For instance, if you live in an area that is prone to flooding, property coverage might be harder to find. Those who commonly would insure in that area are now reducing the amount of policies for their own threshold. With less competition, available coverage becomes more costly.
Have A Hamoning Agency Agent on Your Side
At the Harmoning Agency, we know that one size does not fit all. The insurance company a friend of yours utilizes might not fit your coverage needs. We take a look at your policies, insurance needs and get to work pulling estimates from different companies to ensure you the best price for the coverage you need. Contact us before your insurance lapses so that we give your coverage the time it needs to get the best price for your needs. Talk to the Harmoning Agency today!
