The Expert Podcast

• The homeowners insurance crisis in the United States is intensifying, with significant impacts on the real estate market.
• Even international publications like the Financial Times are reporting on this issue.

• Over half of the states in the U.S. are facing serious homeowners insurance issues, including rate increases and policy cancellations.

• Historical claims data and regulatory requirements for rate approvals.
• For decades, insurance claims remained relatively stable.
• Since 2019, claims have surged due to inflation, social risk, higher expenditures, and natural disasters.
• Insurers face delays in adjusting rates due to the lengthy approval process.

• Many insurers are pulling back from the market or are unable to keep up with the rising claims costs.
• Some states are allowing accelerated rate increases, but it's not sufficient for all insurers.
• Insurers must maintain sufficient reserves to sell policies, leading to market exits.

• Homeowners are struggling to obtain insurance, with some going without coverage, increasing deductibles, or lowering coverage.

• Start looking for alternative coverage well before your policy's expiration date.
• Contact your insurance broker or agent a few months in advance to explore other options.
• Be proactive, as agents have limited capacity to shop around for all their clients every year.
• Consider surplus lines and new insurance options that may now be available.

• A client saved $800 a year on an umbrella policy by finding an alternative through proactive searching.

• Begin the process early if you suspect changes or non-renewal in your policies.
• Ensure you have ample time to secure new coverage for your home, auto, or high-value business assets to avoid last-minute scrambling.