Reasonable Rates or Self Insurance
The higher the Risk, The richer the Premium
We have folks call into our office everyday looking for alternatives to their current carriers’ rising premiums, increasing deductibles, downgraded coverage, unresponsiveness to claims and worst of all, Notices of Cancellation (NOC). With each opportunity given, we do our very best to place them back into a policy, coverage and premiums under a carrier they’re confident in and comfortable with. But, on occasion we run into a bit more of a challenge for some clients. If you’ll give us a moment, we’d like to share our two cents.
There are many factors that go into how the insurance carriers might determine coverage premiums. Not surprisingly, none of us are eager to pay high premiums for something we don’t ever plan on having to use. But, if there were NO risk, we wouldn’t need insurance in the first place. Likewise, insurance carriers aren’t out there aggressively seeking out risky business or new ways to pay out on claims. They’re a business, and in business to make money. Now honestly; Aren’t we all? The next time you’re in the market for the right coverage to protect your home, auto, life or business, here are just a few factors that many carriers might be considering when they rate the risk we ask them to assume:
- What’s the risk worth in dollars to restore like before or replace (Greater financial risk normally commands richer premiums)
- Regional risks (Heavy traffic, Shaky geology, Unstable climate, Large population, Area’s loss history)
- What’s the condition of the item to be insured (Is it well maintained showing pride of ownership OR dilapidated and in need of great repair)
- Is the home or business inside city limits or rurally located (Fire departments’ ability to respond affects the severity and amount of a possible loss)
- Swimming Pools and Trampolines (You’re best off having them fully fenced and netted)
- Aggressive animals (Dog bites account for over 30% of all liability claims)
- Does the owner have claims history in the past 3-5 years (Carriers today throw up red flags for Accidents, Violations, Fire, Water or Theft claims, but don’t normally panic after a No Fault or one or two weather claims)
- Individual or Business’ Credit Score (Yep! The insurance carriers want to know if you’ll have problems paying your bill on time)
- Prior Insurability (A client who’s maintained coverage is perceived more responsible than one who’s been intermittently covered &/or cancelled)
- With Life; Age? Male or Female? Smoker or non? Weight proportionate with height? Medical history and health? (How we take care of ourselves affects our risk of loss)
- Driving Record (Past performance is a pretty good indicator of one’s habits and future claims)
Folks, we’re probably not telling you anything you haven’t already thought about. Each of our decisions
on how to insure revolves around how much risk we’re willing to take on ourselves vs desire to transfer to the insurance carrier. Anymore, one can’t turn on the TV without recognizing natural disasters are increasing in frequency, severity and cost. The days of filing whatever claim against your policies after self-repairing the kamode only to have it later flood your entire living room, or destroying the garage door and opener because you backed out with the tailgate up, or having a guest suffer injury because you threw a party on your newly constructed deck before installing the handrail, well those days are becoming tougher and tougher on your insurability . Insurance carriers expect us to be just as responsible the premium dollars as we’d expect them to be after a catastrophic loss. That’s pretty much what insurance was established for in the first place, catastrophic loss. Please give consideration, the next time you might be the responsible party, and think twice or consult with your agent to determine if that claim should be borne by your carrier or the party actually responsible for the damages. It just might help protect your future ability to get Reasonable Rates and protection from catastrophe or have the difficult task of Self Insuring.
Either way, give us a chance to earn the privilege of serving you through our network of a dozen Preferred carriers or, if you’ve hit a few bumps along the way, any one of our half dozen Standard carriers. We’ll do our very best to help you “Get More Than You’re Already Paying For” if you award us the honor of your trust.
Luis Roque is a local Independent Agent who strives to help you to “Be Protected, Not Surprised. Get More Than You’re Already Paying For.”Roque Agency Insurance is located at… 150 Uptown Square, Suite C
Murfreesboro, TN 37129.
Roque Agency Insurance 
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