Homeowner Insurance Prices Rising After Years Of Record Wind, Hail Losses
|By Matthew Sturdevant, The Hartford Courant|
|McClatchy-Tribune Information Services|
"In addition to high-single-digit [percentage] rate increases, we'll continue to evolve terms and conditions by increasing wind/hail deductibles in targeted states, promoting account-rounded business, and tempering roof claim severity through reduced coverage product offerings,"
Account-rounded business means The
Other insurers are taking similar actions, said
The changes are primarily directed at homes in
Insurance companies have paid more in each of the past six years than any previous year to cover claims related to thunderstorms, hail and tornadoes and other related wind events, Hartwig said.
"Prior to 2008, there's not a year -- not a single year, even after you adjust for inflation -- that reaches the level we saw from 2008 to 2013," Hartwig said. "That is ultimately what is driving this is the record thunderstorm losses we've seen in
That recent surge in major storms, particularly during the spring, has led insurers to seek ways they can reduce their losses and improve their profit margins.
"Since 2008, U.S. insurers have paid 4.5 million hail claims totaling
The idea is that insurers want to pay only for the damage that occurred in the current storm during the term of the homeowner's policy.
The average cost to replace a 4,500- to 5,000-square foot roof with 25-year compositions shingles is more than
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