All Blog Entries by Farmers Insurance / Insurance

Home insurance deductibles are starting to become more and more complicated.  Most insurance companies in Colorado are going to split deductibles.  This means they are giving two seperate deductibles. One for wind or hail damage (typically affects the roof) and one for everything else.  Some companies are using participating deductibles for wind and hail.  This means they will put a 1% up to 5% deductible for such losses.  Most people assume this is 1 to 5 percent of the cost to fix the property.  That is not correct.  It is actually 1 to 5 percent of the dwelling amount.  For example, a $300,000 house with a 2% deductible would have a $6000 deductible for wind or hail damage.  It is more important than ever to go over your policies with your agent.

Home insurance rates are likely to be on the rise.  Nationwide 2011 had more $1billion catastrophes than the entire 1980's combined (adjusted for inflation).  In 2009 and 2010 Colorado was listed as the worst state to do business as an insurance company because of the loss ratios.  It is more important than ever to have a good agent that makes sure you are getting all available discounts on your home insurance.

Home owners insurance rates will be on the rise in the next couple years for the industry as a whole.  The insurance industry suffered more billion dollar plus losses in 2011 than the entire decade of the 80's (adjusted for inflation).  The total catastrophe financial losses in 2011 were over 70 Billion dollars, making it the worst year in the history of the United States.  The good news is that Coloradohad a relatively mild 2011, so our rates should not be affected as bad as the rest of the country.  Now is a good time to review your home owners insurance