Do Hurricanes Affect My Insurance?
Hurricane Ian is making headlines.
According to abcnews.com, the hurricane has caused upwards of $55 billion in damage. While many areas in Florida have strict building codes for new construction, there are older areas that do not. According to time.com, many seniors in Florida purchased homes built during Florida’s suburban boom during the 1960s and 1980s. Seniors that live on a fixed income can afford these homes and are statistically less likely to purchase homeowners insurance.
Homeowners were not the only ones affected by the hurricane.
Allstate losses during the 3rd quarter were $725 million, according to http://www.chicagobusiness.com. The massive losses are causing investors to flee, which is concerning for clients insured with this company.
How does this affect me in Illinois?
Any time insurance companies experience massive losses, clients can be affected in multiple ways. Insurance companies become more selective about the type of clients they will accept. They may also change insurance rates to recoup some of the losses that have been incurred.
The most important thing to do as a consumer is to check the AM Best rating of your insurance company. Companies that are rated A+ or better have met strict standards for financial stability, customer service and claims service. You can rest assured that if you choose an A+ rated insurance company, that your premium dollars are not wasted.