Insurance. The purpose is to protect against loss from the unknown. In a planet, where the unknown is seemingly encroaching on us with increasing frequency.
It’s something that Los Angeles is facing right now, in the midst of what will likely go down as one of the most devastating natural disasters in United States history. And like most catastrophes, insurance is a hot topic, one that ripples beyond the disaster zones.
Joe Venezio, Vice President of Northeastern Insurance based in Latham, explains that “a lot of the insurance carriers are trying to pull out of states that have these [natural disasters], around here in Albany, NY, the insurance companies are not doing that, but they are rising the rates because this will be about a $20 billion wildfire claim.”
To Venezio’s point, for example, State Farm, the highest homeowner carrier in California will likely need to raise premiums elsewhere to payout these massive claims.
Locally, across our region, the most widespread disaster insurance claim is typically for flooding – but with extreme weather happening at an increasing rate, the zone of property owners impacted is growing.
The bottom line is with disasters happening more frequently, insurers are taking on more risk. And the costs for us are rising, so it’s key to make sure your coverage is up to date and appropriate for your needs.
Venezio says that “5 years ago, the average homeowner policy was $750, now if it’s under $1000 you should be happy [with prices going up dramatically]”.
It’s important that you actually know your terms. For a lot of people, they get a big packet in the mail, and don’t follow grasp or even bother to read the fine print. That’s why calling and checking in with your local agent, for them to help you break it down, is a good idea. This is especially the case as homes, the biggest asset for most people have gone up in price, it is imperative to make sure that they are being covered at the necessary level.
