Page 21 - Alabama 811 Magazine 2021 Issue 1

Way in the back rooms of the insurance companies are a group of folks named actuaries. What they do is go over
years and years of various kinds of losses, and figure out where/how their company is getting hit the worst – and where to perhaps look for future losses – and either not write those, or place deductibles or exclusions in the policy language.
Maps have been developed illustrating where the main losses are coming from – called “modeling” – and new, special rates have been applied to property located in these areas. Translated,
that means that, for example, if you
are located in a “high wind risk area”
– you’ll now be looking at large – LARGE – deductibles for specific kinds of losses. Example – instead of a high deductible overall on your building – you might have a $500 deductible – but a $10,000 “wind and hail deductible” if you are in one of those areas.
Which means, you’ll have a $500 deductible for fire, or anything
other than wind or hail, (which, unfortunately, includes lightning) – so if lightning strikes the roof – it will be a $10,000 deductible.
Never had a hail claim? Too bad. The “models” say you will. They also say, basically, “take it or leave it”.
Think long and hard before you “jump ship” and go to a different agent (assuming you can find one!)– because come next renewal, that company may not want to write either your building or your business. Every agent is in the same boat – finding coverage
for customers. Period. Not pricing, coverage at all.
We had one account; OK it had some issues – but nothing too unusual. It got Nonrenewed, and after 3 months of searching for coverage, it got written – finally – at triple the expiring premium! And glad to get it – triple! They tagged it for being in a “high risk wind zone” which we never heard of the prior
year – and companies would either NOT write it at all, or only if they exclude wind/hail coverage. THEN they addressed the claims (yes, they were hail claims). It was rough and this isn’t the only one, either.
We have had scenarios like this in the past – but not for at least 20 years or so. All of a sudden, certain companies will write “this” and “this” ONLY. And at this new (higher) price. Period. Take
it or leave it. Never mind they wrote it before – not gonna write it this year. Crazy.
It won’t last forever – it isn’t the “new normal”. But it will definitely be the devil while it is this way. Look for things to get more normal in 3-4 years. Meanwhile, watch your claims. If you don’t have to file it – don’t. Repair those windshield chips out of pocket.
I know you have glass coverage – but save that for an entire windshield. Change your thinking from “That’s why we have insurance” to “We’ll
pay for this so we don’t have higher insurance premiums next year.” Except not liability.
NEVER pay liability claims out
of pocket. You have to inform the company so they can handle it the right way because, you never know
– maybe you really weren’t at fault after all. And even if you were, the insurance company wants to handle it their way. So, only pay property claims out of pocket. YOUR property! Not the other guy’s. Never say “Here’s a couple hundred to fix that bumper”.
Only YOUR property....talk to your agent. That’s what we’re here for!
2021, Issue 1 Alabama 811 • 19