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Insurance fun

Posted by on Oct. 10, 2012 at 8:00 AM
  • 6 Replies

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?

by on Oct. 10, 2012 at 8:00 AM
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by Anji on Oct. 10, 2012 at 12:51 PM
No not yet but we only have renters. A family friend lives near the Waldo fire and she had to have her roof replaced now she has to have her carpets cleaned for the 3rd time. Her neighbor has to have brand new flooring put in and also all new installation.
My best friends mom have cleaned every room in her house twice and it is still gross. I can understand why the costs.are going to be going up.
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by Silver Member on Oct. 10, 2012 at 1:13 PM

It hasn't affected my renter's insurance so far, but I've been seeing alot of instances where it would affect homeowners.  In my mom's part of town there are a lot of roofs being replaced, I know that there have been a lot of issues because of the fires.  

by Sarah on Oct. 10, 2012 at 2:49 PM

eep.  :/

by Kathleen on Oct. 10, 2012 at 3:30 PM

Our insurance has only gone up based on changes we have made(more coverage and lower deducible) but I do worry how much it may go up in the future.  I have a girl I know from high school on my facebook and she was caught in a hail storm in her car recently and the hail was golf ball size and bigger for an hour and her vehicle is totalled. 

by Ashley on Oct. 10, 2012 at 3:38 PM

Yup. Our insurance did about a 40% increase over last year from 700 per year to 1100 per year. Luckily, right when it was due I was refinancing the house, so I caught the jump fast and went with a different insurance company. We are now paying $450 for the year. My sister was (and still is I think) with the same insurance company and her's hiked about 40% as well.

by Julia on Oct. 10, 2012 at 4:53 PM
Our's only went up because we changed who carried our homeowner's l, and made changes to the policy.
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