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Tag Archive for 'claims'

Spending Increase on Personal Lines; Commercial Rates Remain Steady

According to new research by Bankrate.com, more than a third of Americans spent more on insurance last year, while 52% spent the same, and only 7% spent less.

Of those that spent more on insurance in 2012, 62% said they did so due to rising premiums. The second biggest reason for increased insurance spending, according to survey respondents, was due to the purchase of a new home, car, boat or recreational vehicle.

Spending increases on multiple types of insurance was also seen, including homeowners, renters, life, auto and health coverage.

On the commercial side, rates are expected to continue rising later on in 2013 due to above average losses, low investment returns and receding reserve releases. The occurrence of a hard market is not in sight as of now, as both competition in the insurance marketplace and capacity remains high, and price increases continue to differ across the board.

Some suspected that commercial insurance rates would have started to rise in early 2013, but Superstorm Sandy’s effect on the market is predicted to stall or even out current rates that at one point had seemed to be improving.

Insurers across several types of lines and industries will continue to adjust their pricing and coverage in efforts to maintain their profitability. In addition, the rising severity of losses means that carriers to look more closely when processing claims to ensure the claim and the circumstances that caused the loss matches the coverage currently carried by the insured. For restoration contractors, this could result in further challenges with insurance companies, uncovered losses and angry policyholders who didn’t realize their lack of or gaps in their insurance coverage.

Homeowner claim payments rose 173% since 1997

A recent study from the Insurance Research Council (IRC) found that from the time period of 1997-2011, the cost of an average claim payment per insured countrywide rose 173%.

The increase is reported to be rising so rapidly because of increases in claim frequency and heightened claim severity.

This study analyzed both CAT related and non-CAT related claims, with the results of both claims being similar in some aspects.

Non-CAT related claims averaged around $8K and for CAT related claims, the average was $7.5K.

With the rising cost and frequency of claims, restoration contractors will definitely be vying for the business, but how will they edge out the other competition?

You can email us at info@theBDAway.com for a free special report on “13 Ways Restorers Kill Sales” so you have an edge on not doing what your competition will most likely be doing in their selling! Please include your name, company and where you’re located!

The 1(800) Way Agents Put Client Relationships In Jeopardy

We are pleased to bring you a newly published article written by Tim Miller, and is currently running in Cleanfax Magazine’s online monthly publication, “Restoration Insider.”

This article, titled “The 1(800) Way Agents Put Client Relationships in Jeopardy,” discusses a recent fire loss experienced by one of our own BDA team members. Luke’s apartment complex, consisting of eight units all together, caught fire on the east side of the building, while the west side (where Luke lived) incurred heavy smoke damage.

As we all know, times like these are when an agent can step in and become their policyholder’s hero, providing above and beyond service when their client needs it the most, or lose the opportunity all together by a lack of action on their part.

We hope you enjoy this story, and please feel free to send us your thoughts and comments!

Beware Electronics: 23.4 Million Lightning Flashes Increases Chance of Loss

Between 2004-2006, the cost of insurance claims for lightning strikes nearly doubled, although the actual number of claims shrank dramatically. An industry trade group says “fancy new TVs and videogame consoles are to blame.”

With 23.45 million lightning flashes being recorded nationwide in 2011, and as the general public consumes more and more technology each day, the risk of loss due to a lightning strike grows as well. Electronics such as flatscreen TVs, computers and videogame consoles are all susceptible to power surges.

These types of insured losses related to lightning strikes totaled almost $1 billion in 2011 alone!

Are policyholders protected when they incur this type of loss or to that note, do they have enough coverage if the lightning was to cause damage to the property?

Our BDA Client Network, which is made up of restoration contractors nationwide, find that in times of loss, many policyholders do not have sufficient coverage to fully cover the damages incurred to their contents or property. And when that happens, it can creative a negative impact on the relationship between the policyholder and the agent, as the policyholder almost always assumes they have enough coverage.

If you are a restoration contractor that has come into this type of situation, we’d love to hear about it! You can reply to this blog post or email us at info@theBDAway.com

You can also read the full story at:

http://tinyurl.com/cgeewbr



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