As an insurance professional, you need to stay on top of the trends in your industry. When you have clients and brokers inquiring about homeowner’s insurance and casualty coverage for landlords, you should be able to communicate the risk factors that are driving up costs for habitational insurance carriers. Here are two important areas of concern to discuss with your clients.
Extreme Weather Events
The frequency of extreme weather events is increasing every year. Tornadoes, hurricanes, wildfires, and powerful storms can cause extensive damage to homes, apartment complexes, and subsidized housing.
Insurance carriers have had to cover skyrocketing costs for rebuilding and reclamation, which has led to insurers reducing coverage, increasing premiums, or pulling out of certain markets altogether.
High Crime Rates
Insurance carriers cannot control when natural disasters strike, and this drives many of them to assess other risks with a hyper-focused lens. Currently, crime rates are playing a large role in the costs of property and casualty insurance. Habitational insurance carriers are becoming more and more risk-averse, and crime rates are making a strong impact on the market.
Like any other area of service, there are unique factors that impact the costs of habitational insurance. Your clients and the brokers you work with deserve to know when the insurance industry is changing and the factors behind those changes.