Inflation has been bad across the country. No wonder insurnace has been tougher on underwriting, but what does that mean for consumers?
With the increases in homeowners rates we get calls for new homeowner insurance quotes for existing homeowners. Existing homeowners have insurance that is already put in place on their home. This insurance has been put in place for years and the home was underwritten and inspected years ago.
To start a new insurance policy means new underwriting and new inspection.
Which means the property you own will be reviewed for insurability.
Which means it may not be the best risk now, and the underwriting guidelines and policy documents has changed. Even the types of coverages and dedutcibles may have changed.
More often to rewrite an existing home insurance policy the prices are higher, with non comparable coverages as well as potential for repairs needed to make your property more insurable or meet underwriting requirements.
Overall, homeowners insurance rates did increase. A lot of it has to due to inflation on cost of labor and materials. The amount of door-knocking roofers in the southern states after a storm has surely costed insurance companies much more and also has caused them to tighten up on underwriting properties and areas.
Higher standard deductibles are the new norm with homeowners insurance. Starting at at least $1,000 and wind/hail deductibles at 1%.
Roofing schecdules are the new normal as well. Which basically means your roof is on a depreciaion scheudle and depreciation will be deducted before a cliam is paid out based on the age and wear of the roof.
Insurance is to make you whole again after a loss, so if you had an older and worn roof then we would take that into account with your claim.
Things that insurance companies are still looking for? Roof age and roof type. Handrails. No debris in the front or back yard (show pride in homeownership). No chipped or peeling paint on the facia, soffit or windows.
When buying a home think about how the insurance company would evaluate a risk for safety (liability) and the chance of a future claim (already damaged or worn products on the home).
If you need guidance on the insurance side of your homebuyuing process please call us at William Penn Insurance LLC! 717-900-8658