Looking for Better Rates on Home Insurance in Columbus Ohio?
Online quotes are also available from up to 10 different companies by clicking: Columbus Ohio Home Insurance.
Columbus Ohio Homeowners Insurance Rates Are Increasing!
If you have received a renewal Declaration page from your insurance company recently you have likely noticed that your premium rates are significantly higher now compared to only a few years ago.
Regrettably some insurance companies have increased prices by 300% on homeowners insurance in Columbus!
Why Have Prices Gone Up?
Storm activity! Wind and hail damage are causing record setting claims to be paid by insurance companies which is causing insurers to take four specific steps:
- Raise Prices
- Decrease Coverage
- Increase Deductibles
- Cancelling Policies
This is How Insurance Companies Price Columbus Homeowners Insurance.
Some consumers mistakenly conclude that insurance companies are merely cheating policyholders when they raise prices.
However policyholders need to understand the basic premise or concept of insurance:
Insurance is merely spreading the risk of loss among many different buyers. Each year some policyholders will experience claims while others do not.
When claim activity increases more than anticipated, insurance companies will pass along those expenses of unanticipated claims in the form of rate increases.
The Basic Methodology of Price Increases for Insurance:
Let’s assume hypothetically that the insurance company you are insured with pays out $1 million more in claims than initially estimated or projected.
We can also assume your insurance company has 10,000 policyholders in the affected area.
The actuarial rate increase projection simply divides the extra losses among the 10,000 policyholders in the affected area. So in other words the projected or expected rate increase should be $100 that should be passed along to policyholders because of the extra losses incurred with your insurance company.
Not All Insurance Companies Are Passing along the True Projected Rate Increases!
Some insurance companies are taking aggressive rate increase actions increasing premiums significantly more than the necessary based on projected rate increases.
Other insurers are passing along the exact rate increase required. In some cases to gain market share, other companies are taking little to any rate action. Absorbing those loses in order to attract new clients to their company.
When looking for Home Insurance in Columbus Ohio Why Not Call Us?
If you receive a substantial rate increase on your Columbus Ohio homeowners insurance you should call our agency at 800-998-0662 or 513-662-7000.
Or if it is more convenient request an online quote by clicking on on: Home Insurance Columbus Ohio.
We offer many other different types of insurance in Columbus including inexpensive rates on Columbus auto insurance, Landlord Insurance, Condo Insurance, Columbus Contractors Insurance, renters insurance, business insurance, and life insurance.