Here is where it most recenty started, NC House Bill 1305 (http://nc.iiaa.org/Linked%20Documents/Raleigh%20Report/Implementation%20of%20House%20Bill%201305.pdf). Long story short, it makes the insurance companies doing business in NC responsible for 1 B (with a B)illion of looses on the coast in the event of a large hurricane. This is on homes they DO NOT insure, but is in addition to homes they insure. Because of this the companies are scrambling to maintain future profitablity. While I don't know what is going on with every company we are seeing some of the following:
- Consent to Rate (CTR) letters. The insured has to sign in order for the policy to be renewed. The insured is agreeing that they will pay a higher premium for the coverage than the state allows with out notice. My understanding State Farm is doing this on all homes, other companies are doing it on a selected basis such as claims history.
- Mass cancellations. Allstate is cancelling all Homeowners policies if the client does not have other coverge and then placing with another carrier. The also have CTR on most policies.
- Separate Wind and Hail Deductible. Even in interior counties like Pitt some companies are implementing a separate deductible for Wind and Hail (that is where Hurricanes fall under but can also apply to just a random wind storm) My understanding is that Travelers is going with a 5% deductible in Pitt county. If you have a 250,000 home and a loss you have a 5,000 deductible!
- Rate increase!!!! We have seen up to 40% with several companies. Don't get me wrong, all companies will be going up, but to what extent is the question.
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