As a Texas Independent Agent, I can relate to rising premiums since Texas is a weather state. My markets point to not making any money on HO for several years. My current Loss Ratio with my leading market is also poor due to weather losses. Last year, it was the wildfires plus storms. The big three of State Farm, Allstate and Farmers have all taken more rate than my companies so it is fairly easy to beat them on both coverage and cost. Allstate has gone to ACV on roofs. That should test their claim satisfaction guarantee.
I read the Dallas Morning News and commented in it also. Most of the comments were negative as people assume that insurance carriers are simply greedy. I tried to provide a few facts to educate the DMN readers and am constantly educating my customers to let them know why rates are increasing. Most customers understand the rate increases if we educate them as to the facts and the ones that understand the most are roofing contractors. I am interested in finding out if anything was accomplished in the TDI commissioner’s War on Hail Conference in Irving, Texas several weeks ago. It was my understanding the commissioner had construction material manufacturers present to look at a real push to get away from standard composition shingle roofs – change to more something that takes more punishment. Put the change in local building codes so, the building ordinance endorsement will pay for the additional cost of upgrading. I am seriously thinking about putting a steel roof on my house as I have an open wind and hail claim. I am a Farmers agent and have lost some business to independents but, it goes in cycles. The next big hail storm, those carriers will be paying for new roofs on those houses and it will be their rates that increase. Most of my customers that have new roofs are happy with the discounts and lower rates they now have.
Did you have some issues with that last big hail storm that rolled across the Dallas area several months back? From what I understand, it was somewhere between a billion and 2 billion in losses to homes, autos and businesses. That area tends to be in wind and hail alley and I understand carriers are putting big deductibles on property over there for W & H.
My office is in Duncanville which is a suburb of Dallas but, having been in business over 30 years I have customers all over this area. There were about a dozen such storms that hit this area in 2012 – which is more than usual. I had claims which in every hail storm and two tornadoes which hit the Dallas area. Most of the storms were under reinsurance deductibles so, the primary carriers are paying it all. Weather patterns have changed the past twenty years as the frequency and severity of these storms use to hit about 80 to 120 miles west of here – in open ranch land areas. Most of the houses in those counties have had steel roofs for over 50 years. Most major carriers are going with 1.5% to 2.% wind & hail deductibles for new business but, keeping their existing business with whatever they currently have. This will prompt many customers to replace their roofs with something tougher than composition shingles.
It sure beats living on the frozen tundra of Iowa, Michigan, Minnesota, Wisconsin and other blue states. We can play golf year around down here. Yes, we have our storms where the cold air from the north meets the warm, moist air of the gulf. When they collide, we have some issues. Carriers stay since the state is a very large insurance market and they make money on other lines.
I played 27 on December 16th. And a few days later, 11 inches of that darned white stuff. I hear you Agent, being able to play golf year-round would be great. I’m guessing I’ll have to wait until at least late Feb now, but you never know. Though, I’d choose the Carolinas and a handful of other states before Texas. Texas just isn’t my style. No offense, doesn’t sound like Iowa is your style, either. And, that’s okay. Hope you had a nice Christmas!
I hope you had a good one too Planet. Almost anywhere in the south is preferable to almost anywhere in the north for weather, lifestyle, business environment, cost of living etc.
As a Texas Independent Agent, I can relate to rising premiums since Texas is a weather state. My markets point to not making any money on HO for several years. My current Loss Ratio with my leading market is also poor due to weather losses. Last year, it was the wildfires plus storms. The big three of State Farm, Allstate and Farmers have all taken more rate than my companies so it is fairly easy to beat them on both coverage and cost. Allstate has gone to ACV on roofs. That should test their claim satisfaction guarantee.
Allstate has not gone ACV roof in Texas, and the CSG does not apply to homeowners insurance. Get your facts straight before you post.
I read the Dallas Morning News and commented in it also. Most of the comments were negative as people assume that insurance carriers are simply greedy. I tried to provide a few facts to educate the DMN readers and am constantly educating my customers to let them know why rates are increasing. Most customers understand the rate increases if we educate them as to the facts and the ones that understand the most are roofing contractors. I am interested in finding out if anything was accomplished in the TDI commissioner’s War on Hail Conference in Irving, Texas several weeks ago. It was my understanding the commissioner had construction material manufacturers present to look at a real push to get away from standard composition shingle roofs – change to more something that takes more punishment. Put the change in local building codes so, the building ordinance endorsement will pay for the additional cost of upgrading. I am seriously thinking about putting a steel roof on my house as I have an open wind and hail claim. I am a Farmers agent and have lost some business to independents but, it goes in cycles. The next big hail storm, those carriers will be paying for new roofs on those houses and it will be their rates that increase. Most of my customers that have new roofs are happy with the discounts and lower rates they now have.
Did you have some issues with that last big hail storm that rolled across the Dallas area several months back? From what I understand, it was somewhere between a billion and 2 billion in losses to homes, autos and businesses. That area tends to be in wind and hail alley and I understand carriers are putting big deductibles on property over there for W & H.
My office is in Duncanville which is a suburb of Dallas but, having been in business over 30 years I have customers all over this area. There were about a dozen such storms that hit this area in 2012 – which is more than usual. I had claims which in every hail storm and two tornadoes which hit the Dallas area. Most of the storms were under reinsurance deductibles so, the primary carriers are paying it all. Weather patterns have changed the past twenty years as the frequency and severity of these storms use to hit about 80 to 120 miles west of here – in open ranch land areas. Most of the houses in those counties have had steel roofs for over 50 years. Most major carriers are going with 1.5% to 2.% wind & hail deductibles for new business but, keeping their existing business with whatever they currently have. This will prompt many customers to replace their roofs with something tougher than composition shingles.
Texas Homeowners should pay the highest home rates in the country. Little things like hail storms, tornados and hurricanes make this mandatory!!
Hard to believe TX is higher than FL rates!
You know what they say, “everything is bigger in Texas.”
It sure beats living on the frozen tundra of Iowa, Michigan, Minnesota, Wisconsin and other blue states. We can play golf year around down here. Yes, we have our storms where the cold air from the north meets the warm, moist air of the gulf. When they collide, we have some issues. Carriers stay since the state is a very large insurance market and they make money on other lines.
I played 27 on December 16th. And a few days later, 11 inches of that darned white stuff. I hear you Agent, being able to play golf year-round would be great. I’m guessing I’ll have to wait until at least late Feb now, but you never know. Though, I’d choose the Carolinas and a handful of other states before Texas. Texas just isn’t my style. No offense, doesn’t sound like Iowa is your style, either. And, that’s okay. Hope you had a nice Christmas!
I hope you had a good one too Planet. Almost anywhere in the south is preferable to almost anywhere in the north for weather, lifestyle, business environment, cost of living etc.
Everyone pays the highest rates in the country. Just ask ’em!!!
And earthquake coverage is not even available for Texas residents, according to my agent!