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Senior Advisor

Weather and Insurance

Saw a piece on TV that suggested that extreme weather can lead to increases in insurance rates.  Apparently, this is by state.  More claims in Tennessee don't mean higher insurance costs in Iowa.  But, if we have a general trend of more extreme weather, we can assume that payouts will inevitably lead to higher premiums.

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Honored Advisor

Re: Weather and Insurance

 

Absolutely.  We have had enough losses in NC to jack our rates quite a bit.  It doesn't mean anything if you haven't made a claim...if enough policyholders do, your rates will climb accordingly. 

 

In VA a decade or so ago, there was a very destructive hailstorm, adn we ahd soem damage to teh house on Mike's homeplace.  As I recall, we got new roofs on two house, and new painton the metal roof, plus new siding on one house on the storm's worst side...dented the aluminum badly.  Stripped the paint off the same direction on a painted wood side of another house. 

 

I remember our agent at the time saying that it was a ten million dollar hailstorm, and that our rates on the next renewal would take our breath away.  He was right. 

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