HOMEOWNERS insurance rate adjustment
Wednesday, September 5th 2001, 12:00 am
By: News On 6
Insurance rates are rising for many homeowners, who might not notice the changes until their policies renew this year. The News on Six's Emory Bryan says unless homeowners check with their agent, they might not notice an insurance rate increase.
It's often included in the mortgage payment and adjusted only once a year. In clear weather, investing in a quality roof may not seem so important, but it's not only the best way to protect your home, a good roof protects you from higher insurance costs. Over the last two years, roof damage has been the top claim on homeowners insurance. Spring and summer hail storms cause the most damage, easily costing thousands for each house, and sometimes affecting entire neighborhoods. Randy Patterson with Allwine Roofing, "And it just seems to me every year the hail gets larger and more severe, to where 15 years ago we worked pretty much year round without a slump and now storms seem to be the major threat to roofs." And the damage is being reflected in higher insurance costs.
19 insurance companies have raised rates this year, ranging from 3% to a nearly 15% increase. The rate hikes are almost industry wide for insurance companies working in Oklahoma. The insurance companies say Oklahoma has so many storms and roofing material has become so expensive, they have to raise rates to cover their cost. "When the hail impacts the roof it knocks the granules off but if the hail is large enough it will actually leave a bruise on the shingle." And that kind of damage eventually leads to leaks and expensive repairs. "The average house you're looking at around $3,000."
Now some insurance companies offer discounts on homes that can stand up to a storm.
For the changes granted to homeowner's insurance mentioned in this story, CLICK HERE