If you are like most Texans, then your homeowners and auto insurance rates have probably increased recently; leaving you to wonder why. If you want a scapegoat, then look no further than our wonderful Texas weather. According to a recent article published in PropertyCasualty360, “…hail storms frequently cause severe property damage…every state is susceptible to hail…” In fact, the State Farm, one of the nation’s largest auto and home insurers reported paid losses of more than $3.9 billion to its policyholders in 2012 alone.
[tagline style=”boxed” effect=”bg3″][modal id=”4530″ style=”body” classes=”button primary big right” footer=]Get a Quote[/modal]
Homeowners Insurance Quotes
Call 214-717-4326 or click here to start your online rate indication.
[/tagline]
Texas leads all states with 47,000 hail claims in 2012. Now take State Farm’s alarming statistics and combine them with the Texas Department of Insurance statistics and you will notice an alarming trend.
[note style=”white”] According to the Texas department of Insurance, hailstorms accounted for $1.7 billion in statewide-insured losses in 2011. For residents in the Dallas Forth Worth Metroplex, the number are even more shocking. The Dallas-Fort Worth area accounts for $1.2 billion of the state’s total hail losses. [/note]
For those of you living in Dallas and Fort Worth, you may find your home insurance rates going up at a faster rate. Due to their sheer size and market share, larger companies like State Farm, Allstate, and Farmers will more than likely continue their trends of rate increases coupled with policy limitations.
Expect continued rate actions
As of 2013, Texas insurance consumers should expect a trend of rate increases and policy changes from home insurance providers. In fact, a number of current and former Farmers policyholders have provided us with copies of their new policies. We noticed rate increases on many policies and increased wind and hail deductibles on most. In the cases we examined, Farmers wind & hail deductibles increased from 1% to 1.5% on some and 2.0% on others. That means for a home with $100,000 dwelling protection limit, their wind & hail deductible increased from $1,000.00 (1%) to 1,500.00 or $2,000.00.
Following weather trends, State Farm has also taken rate increases in excess of 20% for many Dallas and Fort Worth residents. Citing their profitable 2012 results, consumer advocates continue urging Texas’ largest home insurer to roll back their rate increases from December 2012. While advocates make valid points about State Farm’s overall profit of 14.4 percent, removing investment returns could paint a different picture of State Farm’s financial position relative to the Texas market. Look for State Farm to continue their trends of higher rates and renewed focus on making underwriting profits over investment profits.
Rounding out the Texas 3, Allstate had a relatively quiet 2012. The good hands folks continue flying below the radar and out of the site of consumer advocates. According to PropertyCasulaty360.com, Allstate’s 9.8 percent increase from March 2012 continues to be their most recent and significant change to Texas homeowners. In 2012, Allstate rolled out their new “House & Home” insurance policy in many states. According the Insurance Journal, Allstate CEO Thomas J. Wilson stated that their new policy will help the company properly price roofs in particular. The roll out is scheduled to continue in phases from 2012 to 2014. When information comes available about changes to their Texas policy, we will post that information online.
Take Control of Your Insurance
As insurance companies step away from their reliance on investment returns and return to their underwriting roots, Texas insurance rate increase could be around for a while. Texas consumers looking to take control of their insurance policies should begin by looking at insurance holistically rather than in silos. Shopping for home at one place while shopping for auto protection at another will yield less than desirable rates in most castes. We compiled these tips to help you get the best rate on homeowners insurance.
Consider Package Pricing
Insurance shoppers will find rate increases more common on policies where no auto discount exists. When shopping for insurance, shop your auto and home together. A good home insurance claim history combined with a good driving record could reduce premiums by as much as 30%. If you are married to Geico or Progressive, expect limited home insurance coverage and options at best.
Maximize Home Discounts
Carrier additional discounts many of the following including: Gated Community, green home, impact resistant roofing, home systems renovations within 10 years, having home alarms and smoke detectors, and remaining claims free. As companies continue making changes to their policies, expect the discounts to change as well. Always ask the agent to review coverage discounts. It helps.
Use Independent Insurance Agents
Using an independent agent or broker can open the door to many insurance carriers that you may have never heard. A state as large as Texas is home to dozens of home insurance companies that want your business. Independent agents often have relationships with more than 1 home insurance provider making the job of finding coverage much easier. Instead of getting one quote per phone call or email, and independent agents can provide you with several quotes from multiple A rated carriers admitted Texas carriers.