How can a storm affect your insurance premium. Whether you watched the coverage on T.V. or experienced the storm first hand, homeowners all across New Hampshire, Maine and Massachusetts could feel the affects of the storm in the years to come. As insurance companies watch the claims roll in, they are also seeing millions of dollars roll out. While insurance companies are prepared to deal with large scale loss incurred from natural disaster, they also must make some changes in order to compensate for lower cash reserves.
While some experts believe insurance rates will not be immediately affected by a New England storm, others project rates will be on the rise every year. East coast homeowners may feel the impact first but over the next 3 to 5 years, homeowners across the country could feel the burden in their pockets too. But this hike on insurance premiums isn’t due to the recent storm alone. Over the past couple of decades we have seen the number hurricanes and super storms on the rise. Starting with Andrew in the 90′s and more recently Katrina, Irene, and Sandy, Americans are seeing a trend in catastrophic weather impacting more widespread regions of the country. Once considered a threat limited to homeowners in the gulf, now hurricane season has homeowners from Florida to Maine on edge. Even states as far inland as West Virginia have been affected. So experts can’t help but to wonder if this is the “new normal” for weather patterns and if so, insurance companies must adapt and adjust their rates to cover both their customers and their business.
Insurance companies experience low cash reserves after a catastrophic event so they tend to tighten up their underwriting standards. Additionally they raise rates to protect against assuming more risk in the future. Just because a homeowner needs to file a claim, that does not necessarily mean their rates will automatically increase. Instead, insurance companies might reclassify certain regions of the country as “higher risk” than they were in the past. With the weather trends and storm data from the last two decades, don’t be surprised if your state is considered a high-risk region in the near future.
If you would like to learn more about How can a storm affect your insurance premium, please e-mail us today. Along with roofing, we offer Kitchen Cabinet Refacing, Basement Finishing systems and more. We serve homeowners in Exeter, Stratham, Epping, Brentwood, Hampton, Manchester, Nashua and other surrounding cities.
We’re fully licensed and insured, and our installation professionals have an average of 15 years of industry experience. When you turn to Benchmark Home Improvements for your roofing needs, you can rest assured that you’re doing business with one of the most reputable and experienced home re-modelers in the area. In fact, we’re so confident in the quality of our work, we include a labor warranty on the installation we perform.