Bouts of unpredictable severe weather in recent years have caused some insurers to raise their rates, cut coverage, and deny payouts...
Cleveland OH (PRWEB) April 12, 2012
Restoration Local, one of the leading providers of water removal and restoration services in the country, is advising homeowners to take a second look at their insurance coverage ahead of a busy severe weather season, as more and more insurance providers are restricting coverage and re-evaluating financial liabilities.
According to the Consumer Federation of America, bouts of unpredictable severe weather in recent years have caused some insurers to raise their rates, cut coverage, and deny payouts more frequently than in years past. The result is more liability and expense being shifted onto the
The Insurance Information Institute responded to the statement, saying that with 2011 being such an extraordinary year for disaster claims, insurers have taken a step back to assess whether or not they are able to absorb such severe losses.
Some providers have pulled out of severe weather prone states altogether, refusing to write new policies and in all likelihood will not renew current ones. Florida leads the pack in this practice, with insurers beginning to bail on coverage in the wake of Hurricane Andrew in 1992. State government programs have stepped in to help homeowners, but at markedly higher premiums.
While many companies are not dropping out of states entirely, they are still likely to cherry pick among their customers, dropping those who appear to have a higher than average claim rate due to water or severe weather problems. As is so often the case, the insurer waits until the contract is up before deciding whether or not to renew, with many renewals bringing much higher rates. Insurance providers view this practice as “responsible risk management”, while many property owners simply feel left out in the cold.
Homeowners renewing every year may also find more and more limits buried within their policies, with many companies severely curtailing the coverage offered on catastrophes such as severe storms or hurricanes. This is typically done through the raising of deductibles, capping replacement costs, and removing coverage for one covered event if it is accompanied by another non-covered event (wind and flooding being the most obvious example).
Restoration Local advises homeowners to shop carefully for new homeowner’s policies, looking for similar houses and comparing prices and rates.
With service providers in 30 states, Restoration Local is one of the leading providers of water removal and restoration services in the country. They are available 24/7 and all work is guaranteed.