Author: Vincent
Are New Zealand homes becoming uninsurable?The natural disasters of the past years have led to a troubling trend in New Zealand: some homes in the country are becoming uninsurable.In recent years, New Zealand faced a series of natural disasters, among which are the devastating Canterbury earthquakes to the more recent Cyclone Gabrielle.Insurance companies now say that the risk that is associated with insuring properties in certain high-risk areas is becoming too great. This leaves homeowners in vulnerable positions.The financial implications of natural disasters prove to be too costly. Insurers are therefore increasingly hesitant to offer coverage.This issue is, however, not…
What is happening with the home insurance market in Nevada?Home insurers are evermore skittish about wildfire risk in Nevada. Despite a decade of profitability, insurance companies are pulling coverage due to increasing wildfire risks.The State of Nevada’s Division of Insurance reports that thousands of homeowners face cancellations or non-renewals of their policies.This leaves many concerned about securing adequate protection against natural disasters. In 2023 alone, almost 5,000 applications for home insurance were declined due to wildfire risk.That is an increase of 104.8% from the previous year. This rise in declined applications highlights the growing reluctance of insurers to cover areas…
Why are home insurance costs rising according to Triple-I?The Insurance Information Institute (Triple-I) shows in a recent analysis that the increase in home insurance costs is driven by several key factors.Sean Kevelighan, CEO of Triple-I, emphasized that the surge in expenses for construction materials has been a primary driver.This increase is largely due to inflation and the heightened frequency of natural disasters.From 2020 to 2022, the cumulative replacement costs related to home insurance soared by 55%. This reflects the rising prices for materials needed to rebuild homes after catastrophic events.In addition to material costs, the frequency and intensity of natural…
How should Texans prepare for storm Beryl?Tropical storm Beryl is approaching the Texas Gulf Coast. Therefore, the Insurance Information Institute (Triple-I) has issued urgent preparedness tips to help Texans brace for potential impacts.Beryl is set to make landfall on Monday, July 8, and will likely intensify back to hurricane strength.The National Hurricane Center (NHC) has warned of hurricane-force winds and life-threatening storm surge.Residents should review their evacuation plans, stock up on essentials, and ensure their insurance details are readily available.Comprehensive preparations include a 14-day supply of food, water, and medications, as well as charged cell phones and filled vehicle gasoline…
Why is American Integrity expanding into Georgia?American Integrity Insurance Group announced its expansion into the Georgia market. It is a regional property insurance provider based in Tampa, Florida,This move marks a significant milestone for the company. It follows its successful entry into the South Carolina market two years ago.Moreover, American Integrity has nearly two decades of leadership in Florida’s property insurance sector.President and CEO Bob Ritchie expressed his excitement about this expansion. He emphasized the company’s dedication to offer customized and innovative insurance solutions.Ritchie stated: “We have been dedicated to offering compassionate, timely, and innovative solutions to our agents and…
Why is American National exiting the home insurance market?American National Insurance Company is set to exit the home insurance market nationwide. This announcement follows their earlier decision to withdraw from nine states.This included California and Louisiana, as part of a strategic shift. In a recent letter to employees and stakeholders the company revealed its decision.The letter cited persistent underwriting losses over the last decade as the primary reason for this move.Matt Ostiguy, Senior Vice President, and Property/Casualty Chief Operating Officer emphasized the significant challenges in achieving profitability in the homeowners insurance sector.As American National pivots its focus towards farm and…
How are ‘kitty cat’ storms impacting home insurance in Iowa?In Iowa, the increasing frequency and severity of “kitty cat” storms are significantly affecting the home insurance landscape.Kitty cat storms are small but powerful convective systems that produce hail and tornadoes. These storms are classified as secondary perils.Traditionally, Iowa’s relatively stable weather patterns made it a low-risk area for insurers. However, the increasing severity and unpredictability of these storms changed this perception.The small storms have led to substantial insured losses throughout the Midwest. These losses are similar in magnitude to major hurricanes in coastal states.Insurers grapple with substantial losses, as a…
How do insurers use aerial imagery to determine coverage?Insurance companies increasingly turn to aerial imagery to assess the risks associated with insuring properties. This procedure potentially impacts homeowners’ coverage.The Geospatial Insurance Consortium is funded by the insurance industry and utilizes satellites and drones to capture images of nearly every building in the United States.These images aid insurers in monitoring policyholders’ properties for potential risks. Aerial imagery allows insurers to conduct more frequent and detailed inspections compared to traditional methods.Insurers obtain high-resolution images of properties by leveraging drones and satellites.These images enable them to identify potential hazards such as damaged roofs,…
Is the FAIR Plan becoming the norm for California homeowners?In the hills of Alpine, San Diego, Paul Felber tends to his property with meticulous care. However, an escalating home insurance crisis overshadows his efforts to create a fire-resistant oasis.Despite investing over $60,000 in home hardening measures, insurance companies turned their backs on Felber and his wife.They are now forced onto California’s FAIR Plan and their annual premium skyrocketed to $5,500. And they are not the only ones with this problem.Their story reflects a growing trend as more homeowners in fire-prone areas find themselves relying on the FAIR Plan. It is…
What is earthquake coverage?After a 4.8 magnitude earthquake struck Friday in New Jersey, insurers reported a spike in inquiries about earthquake coverage in home insurance policies.While standard home insurance policies typically do not cover earthquake damage, separate earthquake insurance policies are available for purchase.This extra coverage becomes essential when certain natural disasters, including earthquakes, are not included in standard policies.The recent earthquake served as a wake-up call. Homeowners are now increasingly considering the necessity of earthquake coverage to safeguard their properties.While inquiries surge among homeowners, it is essential to understand the nuances of coverage options and the importance of adequate…