Have you wondered why your insurance premiums keep going up? Well, the weather is one of the main reasons! In 2012, there were 11 weather –related events that caused over $1 billion in damages, per event! Now not all of the incurred damages were covered by insurance but many were insured!
The weather events included 7 tornado events, 2 tropical storm/hurricane events, a yearlong drought, and western wildfires.
By comparison, there were 14 billion dollar weather events in 2011. What will 2013 bring??
None of these events happened here in South Carolina! Why, therefore, are your home premiums increasing? Many insurance companies issue insurance policies in all 50 states and the premiums collected in all these states are used to pay claims from these billion dollars events. So, yes, your premium dollars are spent to pay the claims for other policyholders in other states. And when an insurance company needs more income, they sometimes can increase rates for all their policyholders, not just for policyholders in a particular state or those who had a claim.