As we approach a hurricane season purported to possibly be worst than the last, homeowners not just in the gulf coast might need to worry about their insurance.
In the article Homeowners Face Rising Insurance Rates in the Wall Street Journal, author M.P. McQueen says that "major insurers are dropping policies or not writing new ones in coastal areas from Texas to Florida and up the Eastern Seaboard as far north as Massachusetts."
But the impact on insurance rates is spreading beyond the states in the gulf coast. Allstate, the second largest home insurer, plans to increase premiums in all 49 states in which it does business. Allstate says it is charging higher premiums to try to recoup the sharp increase in reinsurance costs. According to the article, "reinsurance companies, whose business it is to insure the insurer, have begun charging sharply higher prices in anticipation that the hurricanes will become more frequent and more intense."
To avoid being dropped by an insurer, McQueen suggests that a consumer should never file petty claims, as just one such claim could cause a consumer to be dropped by their insurance company. Also, when buying home insurance, buy from a company that has high financial rating from a well-respected rating firm, such as A.M. Best Co. or Weiss Group Inc. Companies that have high financial rating are less likely to drop you or fail to pay a claim because of their own financial woes.
