Weather-Related Disasters Challenge The Insurance Industry
The vast majority of insurance companies are trying to recover from record-setting losses in 2011. The reason? Weather. According to data from the National Climatic Data Center, catastrophic weather-related events caused over $55.3 billion in damage in 2011 and caused at least 669 deaths.
Notable weather events from 2011:
- Hurricane Irene caused record losses in the eastern U.S.
- Wind and hail caused over 20,000 severe weather reports in just the first half of 2011.
- Tornado outbreaks this spring (including significant ones in Joplin, Missouri and Tuscaloosa, Alabama).
- Wildfires in Arizona, New Mexico, and Texas destroyed over 2,000 homes.
- Ice and snow wreaked havoc from Texas to New England.
- Earthquakes occurred in various places, with the most significant occurring in Virginia.
Many insurance companies will start to increase their premiums as a result of these losses. Help keep your insurance costs under control by following a few simple steps:
- Increase your deductible. If you assume a greater part of the risk by increasing your deductible, you can lower your premiums.
- Obtain a package discount by insuring your home and autos with the same insurance company if you don’t already.
- Protect your home. Install fire and burglar alarms in your home, as additional discounts are available for these added protective devices.
In addition, many of our insurance companies provide loyalty credits. The longer you stay with the same insurance company, the larger their loyalty discounts become.
Please contact The Uhl Agency with any questions or concerns or to learn more about available discounts.
