A number of changes and upheavals have made 2023 a perilous time for the insurance industry. Certain types of coverage you’ve maintained in previous years may not be adequate. Here’s what to expect from the insurance renewal process in the coming year.
Your Coverage Limits May Be Too Low
Skyrocketing inflation has raised the prices of nearly everything. Building and construction material prices have risen even faster than the average inflation rate, making a once-simple building project far more expensive.
As a result, your current property limits may not be sufficient to fully repair damage if a loss occurs. Talk to an insurance expert to make sure you have the coverage you need.
The Cost of Auto Insurance Is Going Up
Inflation is also part of the rising cost of auto insurance. Yet the biggest factor here is the decline in auto ownership and driving, as US drivers turn to alternative means of transportation.
To manage auto insurance costs, talk to an expert who can help you understand your policy and its options. Don’t be afraid to shop around for better rates or to adjust your coverage limits to keep insurance within your budget.
Stormy Weather Ahead for Insurance Costs
The increasing frequency of extreme weather events is driving up the costs of coverage for home and business insurance. As some insurers stop offering coverage in high-risk areas, further driving up the premium from the remaining insurers.
In addition, affordability of flood insurance became increasingly prohibitive. The number of private flood carriers continues to dwindle leaving the overburdened National Flood Insurance Program as the primary source of flood coverage.
One option for relief? The recently-passed Inflation Reduction Act provides credits for a number of building improvements related to energy efficiency, many of which can make a home or business more resilient in the face of extreme weather, too.
Do you have the insurance you need for 2023?
Now is the time to look at your coverage and make changes. The Real Estate Practice at Odell Studner can help. To make sure you have the coverage you need, get in touch with our team today!
