Navigating the Personal Insurance Storm

July 5, 2023

In today’s rapidly changing economic landscape, inflationary pressures have become a critical concern for individuals. As personal insurance premiums rise and coverage options shift, it’s crucial to have an independent insurance agent like us, to help you navigate these personal insurance storms.

Our webinar, presented by Ben Coe, delves into the intricacies of inflation in the personal insurance market, explores the benefits of working with independent agents, and unveils valuable tips and tricks to optimize your coverage and create your own rate relief. 

Watch the Webinar Here:

A Hardening Personal Insurance Market

Since the beginning of the pandemic, we have seen a continual steady increase in demand for insurance and a reduced supply. Eighteen months of consecutive quarterly increases have qualified us for a hard market. The term hardening indicates a tightening or increased stringency in the insurance market. This type of market leads to several significant changes, such as:  

  • Increased premiums – Increase in frequency and severity of claims, rising costs of repairs and replacements, and change in how they assess risk.  
  • Reduced coverage options – Insurers may revise policy terms, exclude certain risks or perils, or limit coverage for specific claims.  
  • Stricter Underwriting Criteria – Pre-binding requirements, inspections, and documentation requirements. Some carriers do not offer quotes for just home or just auto policies.  
  • Increased deductibles – We’ve seen this for years with State Farm and their % deductible on homes. Other carriers are starting to roll out % deductible for specific perils.  

How does this impact personal insurance?

  • Regular policy reviews for adequate coverage – This is important for home and auto.  
  • Ask about optional endorsements available through your insurance carrier – Service Line, Equipment Breakdown, and Personal Cyber.  
  • Work with an independent agent to explore alternative insurance providers – We help secure the best coverage and premiums available at no additional cost.  

The benefit of an independent agent.

With 50+ carriers, Shepherd Insurance represents the top financially secure carriers, so you do not have to do the research. As an independent agency, we work for you and present the top option(s) based on your needs. Services we offer:

  • Unbiased advice tailored to your needs  
  • Access to multiple insurers   
  • Advocacy and claim assistance   
  • Customized coverage   
  • Ongoing support and policy reviews   
  • One-stop-shop   
  • Long term relationship    

How do captives differ from independent agents like Shepherd Insurance?

  • Exclusive relationships vs. multiple carrier relationships  
  • Limited product selection vs. a wide range of products (rental, vacant, claims)  
  • Brand loyalty vs. client loyalty  
  • Rigid guidelines vs. flexibility and advocacy  

The importance of personal insurance policy coverage reviews.

Understanding the impact of claims and what your insurance is used for is essential. “Acts of God” still count as claims and can be used when determining insurability and rates. Sometimes small claims and maintenance issues may not be beneficial to file when considering the long effects on your policy. Insurance companies consider the frequency and severity of claims when determining the premiums. Multiple claims within a brief period may increase premiums or even policy non-renewal.  

This is why it is crucial when determining the right coverage. Insurance carriers are constantly innovating and using feedback from their agents to help create the best insurance policies possible for you. Does your current agent do an annual policy review with your insurance agent to help assess gaps they might find in your coverage? As an independent agent, Shepherd Insurance can give you unbiased advice and recommendations as a trusted insurance advisor.  

Tips and tricks to help create your own rate relief in an ever-changing market:

  • Maintain a safe driving record 
  • Avoid small home insurance claims 
  • Take advantage of available discounts 
    • Home  
      • Alarm System 
      • Generator 
      • Water Shutoff Device 
    • Auto  
      • Good Student 
      • Away at School 
      • Low Mileage 
  • Carry high auto liability limits 
  • Build longevity with your insurer  
  • Bundle your policies 
  • Increase your deductible through opportunity cost 
  • Review coverage regularly with an independent agent 

Working with Shepherd Insurance

By understanding the importance of insurance coverage and making informed decisions, individuals and families can protect themselves from the unexpected and ensure a stable future. Insurance is not a one-size-fits-all solution, so it’s crucial to assess your needs, explore your options, and seek guidance from trusted agencies like Shepherd Insurance. Our ability to work with multiple insurance carriers offers clients the opportunity to compare policies and secure the best coverage at competitive rates. Whether it’s auto, home, business, or any other type of insurance, Shepherd Insurance is the trusted partner that helps navigate the complex world of insurance and provides tailored solutions to protect what matters most.  

Interested in more information?

If you found this information helpful and are interested in how Shepherd Insurance can help with your insurance needs, contact us or visit our webinar series channel for additional recordings and upcoming events.