How Climate Drives Insurance Rates and Property Damage

How Climate Drives Insurance Rates and Property Damage

Weathering the Unexpected

In the wake of recent storms, many property owners are realizing how unpredictable the weather—and their insurance coverage—can be. Severe weather events are becoming more frequent and more destructive, pushing property owners and insurers to the brink of financial strain. Understanding the relationship between climate risks and property insurance premiums is crucial for anyone looking to protect their property and finances best. 

The Increasing Frequency and Severity of Natural Disasters

It’s no secret natural disasters are occurring more frequently. According to the National Oceanic and Atmospheric Administration (NOAA), the U.S. experienced 18 weather-related disasters in 2022, each causing at least $1 billion in damage, tying 2022 with 2011 and 2017 for the third-highest number of such events. This continues a trend of increasing disaster frequency and severity driven by factors like higher temperatures and extreme weather events.

The Impact of Climate Risks on Property Insurance Costs

Areas prone to natural disasters, such as hurricanes, wildfires, and tornadoes, are seeing significant increases in their insurance premiums. The Insurance Information Institute (III) reports that average home insurance premiums have risen by about 7% annually since 2017. The New York Post reported, “At $11,759, Florida has the highest average home insurance in the nation. In 2023, Floridian homeowners paid an average of $10,996 for coverage.” States like Nebraska, Oklahoma, and Louisiana also experience high insurance costs due to their exposure to tornadoes and hailstorms. 

The Cost of Rebuilding is Rising

One of the primary reasons for rising insurance costs is the increasing cost of rebuilding homes after disasters. According to the National Association of Home Builders (NAHB), “Building materials prices are up 19.2% year over year and have risen 35.6% since the start of the pandemic.” This increase, paired with labor shortages, is driving up insurance premiums as insurers adjust for the higher claims payouts required for repairs. 

Credit Scores—An Overlooked Factor in Insurance Premium Rates

Beyond the risks of the climate driving insurance rates, your credit score plays a surprisingly large role in determining your insurance rates. Insurers often use credit-based insurance scores to assess the likelihood of filing a claim. Nerd Wallet found “that a person with good credit would pay $1,915 per year for homeowners insurance, on average. But in most states, someone with poor credit would see an average premium of $3,320 per year — more than 73% more.” This factor means that even if you live in a lower-risk state, a low credit score can still result in significantly higher premiums.​

Documenting Damage is Essential for Claim Success

When disaster strikes, your ability to document damage could be the difference between a fair payout and being left to shoulder repair costs on your own. Claims are often underpaid or denied due to poor documentation. Insurance carriers often seek ways to minimize payouts when evidence is lacking. Our team is here to help you set a strong foundation for your claim—starting with proper and thorough documentation. Contact our team today for claims assistance!

Push for Fair Treatment

Many property owners don’t realize that they can negotiate their insurance claims. A significant number of people who accept their insurer’s first settlement offer end up with less than the full value of their claim. This is where public adjusters come in. A public adjuster represents the policyholder—not the insurer—and can help fight for you to receive the payout you’re entitled to per your policy. They are skilled at negotiating with insurance carriers and often help policyholders recover more than they would on their own.

Planning for the Future

The rising cost of insurance and increasing frequency of natural disasters means property owners need to take a proactive approach to protecting their property. Understanding how local climate risks, insurance regulations, and economic trends impact your premiums will help you make better decisions. Consider reviewing your policy annually and consult with professionals to ensure you have adequate coverage for the specific risks in your region. 

Being Blind to Your Insurance Coverage Can Lose You Money

When was the last time you read your policy? Do you remember ever seeing it? The claims process can be incredibly overwhelming and confusing, especially if you aren’t familiar with policy language. Premier Claims is here to help. 

Know Your Coverage Inside Out

Whether or not you understand your insurance policy can make or break your claim. The policy serves as a blueprint for your protection and outlines the scope of insurance coverage in place. If you’ve never seen your policy and are filing a claim, it’s like exploring the jungle without a map.

The first step is to reach out to your insurance broker or agent. They are your direct contact regarding your insurance coverage and can provide you with a copy of your policy upon request. 

Knowledge is Power

Armed with the policy in hand, you gain insight into what you’re protected against and, equally as important, what you’re not. This knowledge is invaluable when navigating the claims process. 

After obtaining your policy, simply forward it to a Premier Claims representative. Premier Claims will assign the policy to one of our licensed professionals to do a thorough ]review. By familiarizing ourselves with the specifics of your policy, we can assist in making informed decisions. The more information we have, the better advocate we can be. To have your policy reviewed by our team, please complete the following form: https://premier-claims.com/policy-review/. This should take less than a minute to complete. 

Recognizing Red Flags

If your broker or insurance carrier is hesitant to provide you with a copy of your insurance coverage, it’s a red flag. Transparency is key in the insurance industry, and any reluctance to share information should prompt further questions. Your policy is a binding contract, and you have EVERY right to review its contents. 

Your insurance policy is more than just a document—it’s your lifeline in times of crisis. Taking the time to understand the legal lingo is an investment in your peace of mind and financial security. Don’t hesitate to reach out to Premier Claims for guidance, and remember, knowledge is power. By arming yourself with information, you can navigate the claims process with confidence and clarity.

Take control of your insurance journey today. Reach out to your broker or agent to request a copy of your policy and then submit your policy for a complementary review by our licensed professionals to ensure your property is properly protected. Embark on the path to empowerment– peace of mind is worth it.

Get a Policy Review: Protect Yourself from Carrier Tactics

How Do You Know You’re Properly Covered in the Event of a Disaster? Answer— You Don’t!

We’ve all got a million and one things on our plate, and who has the time to sit down and dissect an insurance policy, right? Here’s the cold, hard truth— neglecting that policy review could be the decision that haunts you when disaster strikes. 

A storm rolls in, lightning cracks, thunder roars, and suddenly your business is flooded, your investments ruined. You’re knee-deep in water scrambling to salvage what you can, all while the clock ticks down. 

What if you had taken the time to get that policy review?

What if you had known the ins and outs of your coverage like the back of your hand?

Maybe, just maybe, you could have avoided the nightmare altogether. 

Insurance Carriers Are Pros at Taking Your Money

Here’s the kicker— insurance policies are notorious for their labyrinthine language and sneaky loopholes. That “Act of God” clause? It might not cover as much as you think. And those exclusions buried in the fine print? They could leave you high and dry when you need help the most.

Not all insurance claims have a happy ending, but it is possible to increase the likelihood of a happy ending relatively easily. Enters the Public Adjuster: the unsung heroes of the insurance world. Public adjusters, like those at Premier Claims, are armed with the knowledge and expertise to navigate the murky waters of your policy. 

Still not convinced? Consider this— The time you invest in that policy review could be the difference between a smooth claims process and a never-ending nightmare. Not to mention that a policy review will only take seconds of your time. Picture yourself sailing through the storm, confident and prepared, while others flounder in the chaos. 

Intrigued? Concerned? Good, it’s time to take action. 

Face the beast head-on, arm yourself with knowledge, and take control of your claim. Because when disaster strikes you’ll want to be the one calling the shots, not the other way around.

Reach out to Premier Claims today and let us guide you through the murky waters of insurance policies. Your future self will thank you – trust us, we’ve seen it all. 

Remember, ignorance may be bliss, but it’s a one-way ticket to disaster. Allow our team of experts to evaluate your insurance policy and ensure your property is properly protected. By submitting your policy, you’ll gain valuable insight on how to optimize your coverage for maximum benefit. Don’t let it cost you everything. Submit your policy for review today: https://premier-claims.com/policy-review/

The Strategic Value of Litigation in Insurance Claims

There are a few words and phrases that invoke a cringe response within a business setting: bankruptcy, data breaches, and cash flow problems, to name a few. However, the number one trigger for any business owner should be a tie between a lawsuit or litigation. For many business owners, the thought of entering litigation can be daunting, often due to the perceived costs. At Premier Claims, we understand the hesitation around spending money on legal proceedings. However, it’s crucial to recognize that litigation, while an investment, can be a strategic step in potentially receiving the compensation you’re entitled to. 

The True Cost of Avoiding Litigation

Choosing to forgo litigation may seem like a way to save money upfront, but this decision can lead to significant financial losses in the long run. Without litigation, you might accept a lower settlement from your insurance carrier, potentially leaving crucial repairs and damages underfunded. This can result in long-term issues, such as structural damage, mold growth, or even loss of property value. As a reminder pursuing litigation may safeguard you from paying out-of-pocket for extensive repairs that should have been covered per your policy. 

Value of Litigation in Insurance Claims

Increasing Your Claim’s Success

Litigation is often the most effective way to ensure your insurance claim is fully honored. At Premier Claims, our thorough case assessment allows us to determine the true value of your claim. We work closely with an experienced team of legal professionals to present the strongest argument to increase your potential recovery. This process can result in significantly higher compensation, which far outweighs the costs associated with litigation.

Comprehensive Property Protection

Investing in litigation is not just about recovering immediate costs; it’s about protecting your property for the future. Properly funded repairs can prevent further damage, preserving the integrity and value of your property. In the long term, the financial and emotional relief from securing full compensation can far exceed the initial litigation expenses.

A Calculated Investment in Your Future

At Premier Claims, we view litigation not as an unnecessary expense but as a calculated investment in your future. We strive to be transparent about potential costs and work to minimize them while fighting for your return on investment.

The Benefits Outweigh the Costs

While it’s natural to be concerned about litigation costs, it’s important to weigh these costs against the potential benefits. Litigation can provide the necessary avenue to compel your insurance carrier to pay what is owed, potentially preventing you from being under-compensated. By securing adequate funds for repairs and restoration, you not only protect your current assets but also your future financial stability.

Deciding to pursue litigation with Premier Claims is a decision to protect your property, fight for fair compensation, and invest in your future. Don’t let the fear of litigation costs prevent you from obtaining the justice and financial recovery you are owed. Our team is here to support you every step of the way, providing clarity, confidence and experienced guidance throughout the process. There’s value in litigation for insurance claims; what’s holding you back?

Filing a Claim Without Losing Coverage: Know Your Rights

The fear of being dropped by your insurance carrier is a common concern among policyholders, but it’s important to understand that such action is unlikely and illegal. Let’s delve deeper into this misconception and explain why filing a claim shouldn’t jeopardize your coverage.

Filing a Claim Isn’t Something to Fear

Legal Protection for Policyholders

Contrary to popular belief, insurance carriers are prohibited by law from dropping policyholders simply for filing a claim. Laws and regulations bind your insurance adjuster and govern their operations like a set of rules directs a public adjuster. These regulations safeguard policyholders against unfair treatment and allow policyholders to receive the protection they’ve paid for.

Preserving Your Coverage

You purchase insurance coverage to protect your property against unforeseen events, including storm damage. Filing a claim is fundamental to utilizing your insurance coverage as intended. Whether the damage appears minor or significant, it’s crucial to address it promptly to prevent future complications.

Mitigating Future Risks

While the damage you’ve sustained may seem insignificant at the time, it may escalate into a larger problem over time. Delaying or forgoing the claims process could leave you vulnerable to costly repairs or liabilities in the future. Your risks may be at their highest once the statute of limitations for filing a claim has passed. By addressing the damage promptly, you’re taking proactive measures to protect your property and mitigate future risks. To learn more about filing a claim, read our blog: https://premier-claims.com/blog/when-should-i-file-a-claim/

Empowering Policyholders

At the heart of insurance coverage is the principle of protection and support for policyholders. Your insurance carrier should be there to assist you in times of need, not to penalize you for seeking the coverage you’ve paid for. By understanding your rights and the legal protections in place, you can confidently pursue the resolution of your claim. Going through the claims process without fear of repercussions from your insurance carrier for filing a claim sounds rather nice, does it not?

Moving Forward with Confidence

Don’t let your fears prevent you from accessing the coverage your insurance carrier has agreed to issue. By filing a claim for the damage to your property, you’re exercising your rights as a policyholder and taking proactive steps to safeguard your investment. Trust in the legal protections and move forward confidently, knowing that your insurance carrier cannot drop you for simply utilizing your coverage as intended.

Advocate for Your Rights

Ready to address the damage to your property and secure the coverage you deserve? Contact Premier Claims today to learn how our team of experts can assist you in navigating the claims process with confidence. Let us be your trusted partner in advocating for your rights and protecting your property against unforeseen risks.

What is the Purpose of an Inspection?

When was your property last inspected?

Our inspections team provided expert insights into the true purpose and benefits of property inspections. From assessing damage firsthand to advocating for fair compensation, inspections serve as a critical step in protecting your investment. Don’t miss out on reaching your claim’s potential- watch now and learn why an inspection is one of the most important steps of the claims process.

 

 

To learn more about property inspections, check out the following blogs:

 

 

 

 

Let’s Talk Property Inspections

Why Pre-Hail Season Inspections Are Vital: Protect Your Property

 

 

 

 

What is a Damage Assessment?

Protect your property like a pro!

Hear from our Inspections Manager and Adjusting Manager as they break down the essential steps and purpose of a damage assessment. Discover hidden signs of damage, and important safety measures, and gain the knowledge you need to navigate your claims process with confidence. Don’t leave your property vulnerable- watch now to learn from experts.

 

 

 

 

 

 

To learn more about damage assessments, check out the following blog:

Let’s Talk Damage Assessments

 

 

 

 

 

Let’s Talk Damage Assessments

In the world of property insurance claims, the term “damage assessment” holds significant weight. It’s a pivotal step in the process, one that can make all the difference in the outcome of a claim. Take a look at what damage assessments entail and why they matter. 

What is a Damage Assessment? 

A damage assessment is a critical evaluation conducted by professionals to determine the condition of a property, especially in the aftermath of a potential event that could lead to an insurance claim. This assessment aims to identify any visible damage or signs that may indicate underlying issues requiring further inspection. Learn more about the purpose of a damage assessment in our full YouTube video: Let’s Talk Damage Assessments

Types of Assessments

Within the realm of damage assessments, there are various types, each serving a distinct purpose:

Damage Assessment

This initial assessment provides a broad overview of the property’s condition, identifying any visible signs of damage such as dented gutters or damaged soft metals on the roof. Levi Warren, Adjusting Manager and Licensed Public Adjuster, explained how, “A damage assessment can be geared towards any type of damage. It can be everything from hail to hurricane damage to even snow collapses. What you’re doing is documenting the current status of your property so that you can present that to your insurance carrier.”

Scope

A scope is a more detailed inspection where professionals take a deeper look into specific components of the property, such as conducting membrane pullbacks or inspecting shingles for damage. To learn more about scopes, read our blog: Let’s Talk Scopes

Inspection

An inspection is a comprehensive review of a property, conducted in collaboration with the insurance carrier representative, where damages are discussed in detail.

The Importance of Damage Assessments

Damage assessments serve as a crucial tool for both property owners and insurance carriers. Why are they important?

Early Detection

By conducting a damage assessment, property owners can identify potential issues early on, even before filing a claim. This proactive approach allows them to address any concerns promptly. 

Documentation

The assessment provides documented evidence of the property’s condition at the time of evaluation. This documentation can be invaluable when filing a claim, allowing clarity and transparency throughout the process. 

Claim Preparation

Should the need arise to file a claim, a thorough damage assessment lays the foundation for a successful claims process. It equips property owners with the necessary information to support their case effectively. 

Peace of Mind

Knowing the true condition of their property offers peace of mind to property owners, whether they ultimately need to file a claim or not. It empowers them to make informed decisions about their property’s maintenance and protection. 

A damage assessment is more than just a routine inspection— it’s a proactive step towards safeguarding your property and cultivating a smooth claims process. At Premier Claims, we understand the importance of this initial evaluation and strive to provide comprehensive assessments with precision and care. Let us guide you through this aspect of property protection, ensuring your peace of mind every step of the way. Connect with us today to learn more about how we can assist you in navigating the complexities of property claims. 

Hail Damage Coverage: Protect Your Commercial Property

As hail season approaches, we recommend that business owners ensure their insurance policy includes hail damage coverage. Picture a shield, not just against hailstones, but against the unseen risks that follow. Hailstorms pose a significant threat to commercial properties, potentially causing extensive damage to roofs, windows, exterior structures, and equipment. To navigate the challenges of hail season successfully, having the right protection in place is key. 

Prepare Your Insurance Policy for Hail Season

Commercial Property Insurance

This foundational coverage protects your business, including buildings and contents, against various perils, like hail damage. Confirm that your policy explicitly includes hail damage coverage for related incidents. 

Business Interruption Coverage

Hail Damage can lead to business disruptions. Business Interruption Coverage helps cover lost income, ongoing expenses, and relocation costs during the period of restoration. Ensure your policy adequately addresses the potential financial impact of hail-related disruptions. To learn more about Business Interruption Coverage read our blog: The Difference Between Business Interruption and Additional Living Expenses

Exterior Structure and Signage Coverage

Hailstorms can harm the exterior structure of your commercial property, including any signage. Therefore, it’s recommended that your insurance policy includes hail damage coverage that extends to these components to prevent unexpected repair or replacement costs. 

Specialized Coverage for Equipment and Inventory

Moreover, commercial properties often house valuable equipment and inventory critical to daily operations. From high tech machinery to essential tools, your business assets are the gears that keep the engine running smoothly. Here’s a closer look at how you can protect your business and commercial property against hail damage:

Equipment Breakdown Protection

In the event of a hailstorm, equipment is vulnerable to damage. As a result of including Equipment Breakdown Protection in your policy, your policy is able to cover repairs or replacement costs for machinery affected by hail damage. Equipment Breakdown Protection extends beyond general wear and tear, providing a safety net for your technological investments. 

Technology and Electronics Coverage

Modern businesses rely heavily on technology and electronic systems and specialized coverage for these assets is important for business owners to consider when reviewing their insurance policies. From servers to computers, make certain your policy includes protection for these vital components, minimizing downtime and potential loss. 

Inventory Loss Coverage

Commercial properties also house inventories of products, raw materials, or goods in progress. Hail damage can lead to inventory loss, impacting your supply chain and revenue streams. Comprehensive coverage can encompass the replacement of repair costs for damaged inventory, allowing your business to recover and meet customer demands. 

Customization for Industry-Specific Equipment

Recognizing the diversity of commercial enterprises, your insurance coverage can be customized to protect industry-specific equipment. Whether you’re in manufacturing, healthcare, or any other sector, you can tailor your policy to address the unique needs of your business. 

Importance of Regular Policy Review 

Coverage Adequacy for Business Growth

Commercial enterprises evolve, and property values change. Regular policy reviews allow for your coverage to be aligned with the current value of your commercial property and your business assets. It also allows you to account for expansions or modifications. Adjusting your policy as needed prior to the start of hail season, can protect you in the event damage occurs. 

Policy Limitations and Exclusions

Commercial property insurance policies may have limitations or exclusions related to hail damage. A thorough review helps identify any potential gaps in coverage, allowing for proactive adjustments. 

Risk Mitigation Strategies

Collaborate with Premier Claims to assess risk mitigation strategies specific to your business. Tailoring your policy to address unique circumstances can enhance your overall risk management plan. 

As a commercial property owner, your business assets are the heartbeat of your enterprise. Don’t let hail season catch you off guard—proactively review your policy. This allows you to make any hail damage coverage additions, protecting your property and business in the best way you can. Premier Claims stands ready to assist you, offering guidance, compassion, and a commitment to policyholders. Connect with us today to prepare your business for the challenges hail season may bring. To have your policy thoroughly reviewed by our team of licensed professionals, submit your policy here: https://premier-claims.com/policy-review/