Casey Brandt
P&C Consultant
GILSBAR
For commercial property, a higher cost of materials along with ongoing supply chain issues are causing delays and higher payouts in the event of a loss. In most cases, property owners will need to increase coverage limits to align with higher property valuations and replacement costs. Without an increase in limits, there could be significant gaps in coverage leaving the business owner holding the bag. We advise our clients to re-evaluate their current insurance budget as well as their limits. At Gilsbar, we know how important it is for business owners to lower their P&C costs and expand their coverages. The cost and risk of owning a business is continuing to rise, and your insurance coverages must rise to the challenge.
Marcy Grant
Consumer Solutions Risk Advisor
Cadence Insurance
The impact of inflation is widespread, and it affects insurance premiums through various factors, including the cost of materials, contractors and labor shortages, increased wages and supply chain disruptions. However, two factors that are often overlooked are the chip shortage and loss of use. Unavailability of chips and supply chain issues can delay automobile repairs and lead to displaced individuals. Fortunately, many insurance policies cover loss of use, meaning they will pay the costs associated. Things to look for when selecting your insurance policy include loss of use and available credits. Consider contacting a broker to take a second look at your current coverage.
Kyle R. Beerbohm
Agent at Aubert Insurance Agency
The effect of inflation has had a massive impact on the cost of claims for insurance companies. The cost of materials to repair a house has risen dramatically as has the cost of repairing vehicles today. One carrier reported to us that their non-catastrophic claims costs have risen 40% year over year. Claims expenses are the largest expense for insurance companies; when they rise dramatically, the companies have to raise premiums to help make up the difference. When building back your house or building new, consider using FORTIFIED Standards to reduce the chance of claims. Also consider not filing claims for smaller items if you are able to pay out of pocket.
Donald Batiste
Agent
Allstate Insurance
Due to the rise in costs of materials and parts used to repair damaged vehicles and homes most insurance companies are being forced to increase premiums. Specifically for homeowners insurance, the increased cost of building materials is causing the replacement cost of homes to increase. When the replacement cost of your home increases it not only increases your premium, but also your deductibles since they are typically based on a percentage of your dwelling coverage. My suggestion for consumers is to make sure you speak to your agent to ensure you’re receiving every possible discount that is available to you and see if there’s any opportunity for additional savings.
Sebrina Bush Hillard
President
Insurance Design & Placement
Any carrier that is covering property at replacement cost is affected by inflation because the cost of replacing that property has increased due to inflation. At the end of 2022, CBRE estimated around a 14% increase. If you are seeing this on your renewals, it is probably warranted but you can request a copy of the valuation from the carrier to confirm or ask your broker if they can run it through their valuation software. Consumers will also need to be aware that liability and workers compensation rates are also being affected because litigation/settlements are also reflecting increased costs in medical bills due to inflation.
Tiffany Roberts Turlich
Agent
Roberts Family Insurance Agency
Inflation, supply chain disruptions, increased repair costs and more frequent, severe weather have made it more expensive for insurers to protect customers. That’s why it’s more important than ever to regularly review your insurance coverages with your agent. If you don’t understand a particular coverage, ask them. They should take the time to review everything and listen to your coverage wants and needs. They can then help pinpoint opportunities to save, taking advantage of usage-based insurance programs or finding discount eligibility.
