The insurance industry is presently facing a nationwide phase, referred to as a "hard market," presented by an increase in insurance premiums and a reduction in the availability of insurance across various sectors. While options to combat rising premiums can be limited, there are some things to consider when evaluating your insurance policies.

Insurance, like investments, is based on the level of risk you're willing to take. Although factors such as loan agreements and legal requirements may dictate certain coverage, you still have flexibility in how you choose to protect your assets and the amount of risk you're comfortable assuming.

Percentage Deductibles

Percentage deductibles have been used by many insurers for years, offering lower rates to policyholders in exchange for taking on a risk that corresponds to the value of their home. Switching from a flat dollar amount to a percentage of your dwelling coverage can often reduce your annual premium, as it means you're accepting a larger out-of-pocket expense if a loss occurs.

Roof Coverage Settlements

Although it's generally not recommended for homeowners to switch from a replacement cost roof settlement to an actual cash value settlement, many insurers are adopting these guidelines for new policies. This could result in a lower annual premium with a different carrier, but it also means you’re assuming a greater out-of-pocket expenses in the event of roof damage. While you might enjoy a more attractive premium, you’ll be responsible for both your deductible and the difference between the cash value of your roof and the cost to replace it with new materials and labor.

Changing Carriers

When evaluating renewal premium increases, it's important to understand the deductible and coverage of your current policy. Some insurers offer more favorable underwriting terms for existing customers, while starting a new policy may involve a higher minimum deductible or an actual cash value roofing settlement. Neither option is inherently good or bad; they simply reflect different levels of risk. You'll need to assess whether the potential savings in premiums outweigh the possibility of higher out-of-pocket costs if you need to file a claim. Bravera Insurance has access to several insurance carriers, and your advisor will work with you to find quality coverage for your home, auto and other belongings. 

While conversations surrounding insurance may not be among your favorite things, it’s  important to know what’s  going on. Our goal at Bravera Insurance is to work with you and your family to explain the intricacies of the insurance world so you can make the best decisions possible.  While insurance may not always be able to deflect financial inconvenience, we will work tirelessly to be sure it protects you and your family from financial catastrophe.

If you have any questions or would like more information, please do not hesitate to reach out.