Severe Weather Causes Continued Rise in Insurance Premiums

A new report from the Missouri Department of Commerce and Insurance shows that severe weather, like the storm that hit the Kearney area last Friday, is a major contributor to homeowners’ insurance premiums. The report shows a steady increase in claims resulting in higher rates for customers.

The data in the report shows that due to increases in property damage claims, insurance companies have had to raise rates on homeowners’ policies. Wind and hail damages are identified as the major cause of claims to insurance companies, and have surpassed disasters such as fire.

Events such as the Joplin tornado in 2011 are exceptions that spike the numbers. The loss from the tornado caused over $2 billion in property losses incurred with over 19,800 insurance claims filed.

Although homeowners can’t do anything to curb the severity of the weather over their property, State Farm Agent Tracy Tucker says that policyholders can take some actions to help them be prepared and save money in the event of a disaster.

“I definitely recommend meeting with the agent on a regular basis to make sure there is enough coverage for your home, especially with increasing lumber prices,” said Tucker. “I would also encourage discussing endorsements and deductibles to see if there are any adjustments that need to be made.”

When homeowners review their policies with their insurance agents, they should make sure their policy covers the cost of rebuilding or repairing their home. Also most insurance policies cover wind and hail, but sometimes they don’t cover flooding.

Another tip is to be aware of the cost of damages in relation to your deductible. “In the event of a loss, do not file a claim until you verify that the damages are higher than your deductible,” Tucker explained.

Finally, business owners who run their company from their home should know that there may be additional coverage they need. Furthermore, Tucker advises that, “if the homeowner is using their outbuilding or detached garage for anything other than personal use, such as renting it out or using it to store business items, it is excluded from their policy.”

Missouri has experienced some impressive examples of severe weather in the last several years causing insurance rates to increase. With a little preparation, homeowners can take some steps to potentially help their wallets and be better prepared.

KPGZ News - Brian Watts contributed to this story