Who knew we lived in a state chock full of disasters?
I always thought that disasters happened in California and Florida. Those states have earthquakes and hurricanes. The Midwest has flooding and tornadoes. Colorado has been my safe haven- no tornado sirens, no CEA earthquake coverage. No toxic mold like Texas has seen in epic proportions.
Apparently, however, Colorado is a disaster-riddled state. According to the Denver Post, homeowner's insurance, along with auto insurance, is going up, double digits in many cases. From 2008 to the present, Colorado has seen the costliest tornado in our history, and hail storms with over $1.4 BILLION dollars in damages. There may have also been a couple of small-ish fires in the state this year- one or two or fifty-seven (two fires this summer both exceeded the Hayman fire in damages, so the worst fire season on record for Colorado).
Insurers base current and future rates on past expenditures and claims. Simply put, if an insurance company is spending 1.68 in Colorado and only bringing in $1.06, they will not remain viable. They need to bring in a certain amount of money to be able to insure in the state. Hailstorms are the big expenditure in Colorado; they may not be as newsworthy as tornadoes or earthquakes, but they cause billions of dollars of damage to roofs and cars.
All of the big dogs have filed for rate increases; contrary to popular belief, insurers cannot just raise rates on a whim. They actually have to have rate increases approved by a state board before they can implement them. Then, depending on the company, insurers will either give homeowners/auto owners the rate increase all at once or in small increments over several premium renewals.
The economy and prices are a huge topic in our state right now. Has the hike in insurance affected you guys at all? What are some steps to offset it?