Why Rate Pressures are Building in the Home Insurance Market

Why Rate Pressures are Building in the Home Insurance Market

October 24, 2022

Not only are claims more prevalent, repairs/replacements are more costly.

As the home industry deals with an increase in loss costs, here are some of the factors that may affect premiums moving forward.

What to do when your customers question premium increases

There are a number of ways you can address questions about any premium increases and offer options that can address budget and coverage needs.

Provide background info on national factors and trends. Explain the many unforeseen factors that are driving increased risks and costs, including:increased building material shortages and prices, and extreme weather. 
Offer to conduct a coverage review. Quantum Home 2.0® is designed to provide more customized protection by allowing you to scale up or down the base policy coverage, strengthen with optional packages and supplement with specialty options to further tailor your client’s coverage.
For customers who purchased Decreasing Deductible® or Loss Forgiveness, remind them of the benefits. Customers with Decreasing Deductible receive a $100 credit each year that will be applied toward the deductible in the event of a loss. Loss Forgiveness helps clients avoid a rate increase related to one loss every five years.
Consider adding the Roof Systems Payment Schedule for Windstorm or Hail losses. This cost-saving endorsement reduces coverage by paying a specified percentage of the cost to repair or replace a roof when damage is caused by wind or hail. The percentage is based on the age and type of roof, so be sure to keep the roof age updated on their policy.
Offer total account solutions for multi-policy discounts. Travelers offers attractive and highly competitive discounts for customers who bundle different types of coverage.
Consider any upgrades that may qualify for discounts. Installing safety features like smoke detectors, fire alarms, water sensors, interior sprinkler systems, home security systems or smart home technology could offer additional savings.
Ask if they’d consider a higher deductible to lower premiums. Remind them that switching to a higher deductible is one way to quickly decrease their premium.

Why Travelers & Trust Hall continue to be the smart choice

With Travelers and Trust Hall´╗┐, you can customize coverage to address your clients’ needs and budgets with flexible base policy coverage limits and levels, cost-effective bundles that combine popular endorsements and an array of specialty options and discounts. And your customers are supported by:

Knowledgeable Claim professionals who have the technical expertise to help customers through a claim and strategically solve any claim challenge. We also have trained catastrophe response experts ready to be deployed in 24 hours if disaster strikes.
A strong and stable partner with an A.M. Best A++ financial strength rating.
Innovative digital marketing tools and resources that help your agency connect with consumers in social media, increase your web presence and drive leads into your agency. Agents who use these tools can generate 10% more quotes, while increasing cross sell and retention. These industry-leading, complementary marketing resources include:
– Social media campaigns
– Videos
– E-brochures and sell sheets
– Acquisition, cross sell and retention campaigns