Why Is My Home Insurance Price Going Up?

Sun, 04 Aug 2024 19:53:43 GMT

Why is My Home Insurance Going Up?

I know you’ve been to the gas pump, grocery store or even the drive thru --- it’s painful.

The classic “pay more and get less.”

But when it comes to home insurance all the classic inflation reasons apply, plus a few more industry-specific reasons and we’re spending more than a little time answering WHY IS MY HOME INSURANCE GOING UP ?

I would suggest a few reasons:

1-INFLATION

2-CLAIMS

3-HUMAN BEINGS

INFLATION

I’m likely not going to reveal any new information about inflation, but I am just asking you to consider that insurance policies get more than their fair share in inflation since everything you insure has been affected by inflation these past couple of years.

Some things twice. Insurance gets the proverbial “double whammy”.

Take for example your home.

Since 2020, the cost of repairing homes has increased more than standard inflation. We are seeing new build reconstruction costs are up 25%+ and the general contractor labor prices are up 25 %+. Now combine those inflationary rates with increasing property values and add another 20%+.

So, not only is the market asking you to pay the inflation price increases, but insurance companies require you to BUY more coverage since your home is more valuable this year than last year. Higher insurance prices and buying more coverage; it’s a double whammy.

CLAIMS

We used to blame our neighbors on the coasts, citing the wildfires out west, or the hurricanes in the south. But did you know that Minnesota and Iowa were some of the HIGHEST-RISK states for property insurance in 2022-2023? We are not safe from perils in the Midwest anymore. It is OUR problem in OUR states, and even if your home didn’t have HAIL, you very likely know someone who has been through this.

HUMAN BEINGS

There is a human factor. I would love to blame invisible things like inflation or blame unpredictable weather as the only factors. But it is humans too. Can you believe that Human Beings can influence the rate increases too? Sometimes it’s false claims, whether it’s buying a property that already has damage and filing a new claim, or hiring an unprofessional from out of town to fix your damage after they crawl on your roof claiming to find damage (always hire a local contractor, someone you know and trust).

Human factors are playing in the rate increases.

The Simple Math Problem

Question:

If an insurance company pays out $120 for every $100, they collect in premiums for four years in a row- what should the insurance company do?

Answer:

A. Raise the Premium - charge higher prices

B. Stop selling insurance in risky states like Minnesota and Iowa (but just until we figure this out).

C. Leave the state - (examples in California, Texas, Florida, Iowa and Minnesota).

D. Increase the Deductibles – encouraging customers to pay for the smaller things themselves.

E. Change the coverage – if there’s damage on an old roof, insurance only pays less than if your roof was new.

F. Be really picky about accepting new customers.

G. Make new rules to ensure legit claims, like requiring claims to be reported in 12 months.

Chances are your insurance company has probably chosen multiple answers to this question.

2024 is a tough home insurance market in Minnesota and Iowa. All of this equates to home insurance prices increasing - but it is the BEST time to have an AGENT.

Your local agent will visit with you and although we’re all answering the same questions, we can look at your specific risk, with your information. Since we’re independent we know the market. It’s not great right now.

We don’t want to move someone to a new company who is grandfathered in with excellent coverage into a new plan with restricted coverage. But we won’t know until we talk. Many times, we can still better your situation. We love to look at your policy and explain the pros and cons of changing anything right now.

So why is your home insurance going up?

Call your trusted agent today, we want to talk to you.

What to know about Medicare

katelynrschmidt@gmail.com (Katie Schmidt) — Sat, 15 Jun 2024 22:31:10 GMT

The Top 5 things we get asked about Medicare

5- Do I have to sign up for Medicare when I turn 65?

No. Yes. Maybe. It depends. If you are still working and have coverage through your employer you will want to confirm your employer plan is creditable. If it's deemed credible, many people keep working and keep their employer plan and delay accepting Medicare Part A and Part B.

But many people find turning 65 and getting on Medicare offers better insurance options than their employer plan. Our advice- call us for an appointment so you have all your options clearly explained.

Medicare.gov has more info about Working Past 65.

4- Is Medicare free?

Most people will have Medicare Part A coverage at no additional cost due to their employment history and having paid into that system.

Most people will pay for Medicare Part B, that charge is dependent on their income.

Medicare.gov Costs of Medicare

3- Will I be covered when I travel?

Talk with an agent so we can be sure the plan you choose is going to cover your travel plans. Not all plans are created equal when it comes to travel benefits. So it's super important to know how Medicare works, and how your plan works when it comes to travel benefits.

Travel benefits out of the country are especially tricky. Our agency recommends Travel Insurance for your special adventures out of our borders.

Click here to learn more about Medicare's limited coverage outside of the United States.

2- Can I still see my doctor?

When you meet with our health insurance advocates we will ask you what doctors and providers are important to you. We will work with you to find a plan that best covers your providers. We believe the right insurance plan should include access to your doctor that is most familiar with you and your health history. These details are very important to finding the plan that fits you best.

1- How much will my prescription drugs cost?

We spend ample time analyzing, comparing and talking through your prescription list to find you the most affordable way to get your prescriptions. Our advocates will listen and help you find affordable options for your prescriptions.

We use the Medicare.gov tool to compare all the plans in your area with your specific drugs to help you choose a plan that best covers your prescriptions and compare local pharmacy options for you.

Whatever your questions about Medicare may be, we are ready to help you and listed to your concerns. We have found that spending time learning about you and what's important in your ideal health plan ensures that your expectations are met.

family-first

Why Is My Home Insurance Price Going Up?

Why is My Home Insurance Going Up?

What to know about Medicare

The Top 5 things we get asked about Medicare