Hang on to your hats……….

Consumers in Wisconsin are in for a bumpy ride. Homeowner insurance rates have been climbing steadily among all insurance carriers and are expected to rise even further. Insurance carriers throughout the Midwest have experienced unprecedented losses paying for severe and frequent wind storms, hail storms, heavy rain, tornadoes, etc. over the past several years, and premiums simply do not provide enough funds to pay for all the losses experienced. Wisconsin has always had very low home insurance rates compared to all other states in the US and we’ve been spoiled. Insurance carriers, for that matter, have too, because they have always been able to make money doing business in Wisconsin, but that’s definitely not been the case for a while.

There are several things one can do to help control the cost of their insurance without jeopardizing quality protection. It’s best to work with an Independent Insurance Agent who can provide you with coverage options and cost containment ideas, as well as products offered by various insurance carriers. The flexibility available to an Independent Insurance Agent is due to the fact they represent many carriers, which allows the agent to tailor your coverage to your needs. The agent should educate you so that you understand what you are protecting, what options are available and at what cost. Finally, the agent should offer you the opportunity for you to decide what you feel is important to include in your policy, and what you feel you may not need.

As a consumer, it’s also important to revisit your perception of insurance protection. It’s no longer beneficial to file a claim for $600 or $700 damage to your wood floor from a leaking dishwasher. Insurance rates increase if claims are submitted, and carriers can cancel policies when multiple claims are submitted. This leaves the consumer in a position where they are left trying to replace coverage in a market that doesn’t afford coverage to them given their prior claims. Further they can be forced into a very high cost product if they do. Reserve your insurance protection for catastrophic losses. Include high deductibles of $1,000 or $2,500 on your policies to save on premiums in the meantime.