Love Your Home
Tyler Carpenter Agency
410 E Taylor St Ste Q
Inside Historic Coca-Cola Building
Griffin, GA 30223
Bus: (770) 229-7240
www.tylercarpenteragency.com
There are good reasons why homeowners rates are rising
(March 2014) — After years of relative stability,
rates for homeowners insurance are increasing across
the country, including in our state. Why the dramatic
change?
It comes down to basic economics: Insurance
companies are paying out significantly more in
homeowners’ claims and expenses than they’re
receiving in premium.
There are a number of things insurance companies do
to help keep premium costs down. It’s not just a
matter of raising rates. At American Family, we
continually look at ways to be more efficient, fight
insurance fraud and finance research on safe building
materials and theft prevention.
There are also a number of things homeowners can
do to control their premium costs:
The gap between claim payments/expenses has
existed for quite some time. Throughout the 1990s,
however, rates remained relatively stable because
insurance companies were able to partially offset
these deficits with gains from investments.
Consider higher deductibles – A higher
deductible can lower your premium. Remember,
if you choose this route, you will pay more outof-pocket expenses if you suffer a loss and file a
claim.
Circumstances changed beginning in 2000. Claim
payments continued to rise, caused primarily by
soaring home repair, medical and litigation costs, as
well as a large influx of storm claims. Meanwhile, a
weakening stock market decreased investment
revenue for insurers and private citizens alike.
Ask about available discounts – A premium
discount may be available if you have a
qualifying fire/security system installed in your
home or if you have a new home. If you insure
your home and auto with American Family, you
may be able eligible for discounts on both of
those policies.
Prevent home losses/damage – Regular
maintenance will make your home safer and less
likely to suffer damage. Routinely check your
home for fire, water and safety hazards.
Safeguard your home against theft, too.
This has made additional rate adjustments necessary
to maintain an appropriate balance between claim
payments/expenses and revenue. Without them,
insurers would continue to lose money, which would
eventually compromise their ability to pay future
claims.
Decisions to increase rates are made only after careful deliberation of many factors. Changing rates over time keeps insurance
companies financially strong so they’ll be ready when their policyholders need them most: when they have a claim.