Let’s talk claims. Have you heard your agent or company talk about claims a lot more than they used to? No one likes hearing the word claims, not an insured and certainly not us agents. Having a claim is stressful time for our customers and it is our job to help you navigate through it. That being said, there are more insurance companies "cracking the whip" on claims. A lot of times they are unavoidable, but we advise our clients to always be diligent and proactive as to not have to put in a claim. There reaches a certain point where companies will discontinue a relationship with a customer if claims seem to be a problem. The number of claims a company will accept has gotten smaller within the last 6 months. This is why claim control is so important. We recently had an example of just how much claims affect your insurance and ability to get insurance. While quoting a customer we noticed they had one at fault accident from over 4 years ago and a few glass claims. Thinking this would not be an issue we proceeded to write the new business with the carrier, then finding out they did, in fact, still count that claim from 4 years ago against her and were hesitant of the risk and writing her auto policy. We would never in the past have a single claim over 3 years old have an impact on new business. In regards to the insured we were writing, unfortunately, if she were to get one more claim, that could mean it might be difficult to find her coverage. Already, certain carriers are only allowing 1 violation and 1 at fault accident. Some carriers will not take you if you have had 1 at fault within three years. When shopping carriers, be upfront and honest about your claims. Having thorough explanations of all claims and violations will be required and will make a difference. The insurance market at the present time is what some call a "hard" market, or is it the new norm? Requiring higher deductibles, stronger underwriting guidelines and non-renewing policies and rising rates are what we are currently seeing. Keep in mind that insurance is there to prevent you and your family from financial hardship and not for small things that are part of normal home ownership.
So, how do you move forward? Be diligent, take safety precautions and work on taking any step you can to prevent future claims. Talk to your insurance agent about making sure you understand your coverages. As your agent, we are here to help you navigate this new insurance culture and the ever changing dynamics of claims. Things change, but having a compassionate and pro-active agent helps!