By: Jake Gensemer
You may have noticed that your homeowner’s insurance rates have increased substantially over the last few years. You’re not alone in this. Homeowners across the nation have been experiencing rate increases of 50% on average since 2020, which is much greater than the 26% increase in consumer prices.
Many consumers and policymakers believe that the solution to this problem is to set rate controls. However, artificial price ceilings that are presented by policymakers discourage competition in the market for insurance.
The rates offered by insurers are determined by rigorous actuarial risk calculations. When providers are unable to charge their actuarially fair prices, they often lose money when providing coverage. This leads to insurers dropping out of the market altogether, resulting in fewer options and increasing rates.
“Christopher” recently received a large inheritance from his grandfather who had just passed. He discovered that almost none of the inherited properties were insured. Entirely preoccupied with funeral arrangements and family meetings, Christopher realized that he needed to quickly find coverage for these properties. After hours of searching for a provider that would insure each of his newly acquired properties at an affordable rate, he was completely overwhelmed and exhausted.
Knowing how connected his grandfather was to his real estate, Christopher would be devastated if anything were to happen to these properties, if he was not at least compensated. He reached out to The Wealth Conservancy for help.
We were able to assist Christopher in obtaining all necessary documents to understand what coverage was needed for each property. Then, we connected him with a reputable insurance broker who was able to contact providers who would be willing to cover the variety of properties.
Christopher was then able to spend more of his focus and energy with his family, at a time when they needed it most.
If you need help getting ample insurance coverage, contact The Wealth Conservancy today to see how we can help make the process easier for you.
Disclaimer: The events and characters in this article are based on real people and occurrences, but certain details have been altered or fictionalized to protect privacy and maintain confidentiality. Any resemblance to actual persons or events is unintentional and purely coincidental.