Hurricane season really took its toll on the USA and the Caribbean this year! When storms are intense and trigger a lot of damage to property, many people who have home insurance need to file claims. When these claims are valid, they must be paid out by insurance companies. The cost of covering a higher-than-anticipated series of claims puts a strain on the entire insurance industry.
Today, we’d like to look at the financial impact of the storms of 2007, including Hurricane Irma. We want to explore the way that these storms impact the industry at the moment, as well as how they will impact it in the future.
Property Insurance Prices May Rise
In order to handle the financial impact of claims, insurance companies may be forced to raise property insurance prices in the future. In the Caribbean, there are already indications that insurance companies are going to increase property insurance rates. According to industry experts, total damage worldwide from the storms of 2017 (Maria, Lee, Harvey, Irma and Jose) add up to a whopping three hundred and seventy billion dollars.
In the United States, the same trend may begin soon and it may impact all Americans, rather than only affecting those who live in “Hurricane Alley” (the Gulf Coast of the Southern part of America). Americans should keep watch for rising property and auto insurance costs, which will likely go up because USA insurance companies have had to shell out huge amounts of money to pay for hurricane-related claims. Remember, when hurricanes hit, cars get damaged, too, as well as homes. This is why auto insurance rates all over the country may rise in the foreseeable future.
This is bad news for insurance buyers in the USA. However, most people do understand that insurance companies have to stay afloat and that the pressures of paying out so many big claims (which directly relate to the storms of 2017) means that insurance companies have little choice but to raise the prices for their property insurance and car insurance policies.
How Should Consumers Cope?
We know that insurance companies can raise their prices to drum up more cash. If most insurance firms raise their rates, consumers will have little choice but to pay the higher prices. For example, auto insurance is mandatory in the USA, so there’s no way to drive a car legally in the USA without it. Property insurance may not always be mandatory, but it’s something that most homeowners feel compelled to buy, because it offers vital protection.
Since insurance is important, consumers will need to be savvy about shopping around for insurance policies. Comparing several policies with similar levels of coverage, from an array of provider companies, will be the best way to find the lowest price for appropriate coverage. When prices start going up, the value of careful comparison-shopping will be underscored. Consumers who do perform cautious comparison-shopping may be able to find companies which offer more insurance for less money. So, shop around to save.