Thursday, July 17, 2014

Insurance Costs High for Coastal Residents

Anyone who lives along the coast- think people in states like Florida or New Jersey- knows that insurance premiums for people in these areas can often be on the high side. That makes sense, however because hurricanes, to which coastal areas are quite prone, can do some serious damage. 


However, there are people who feel that these increased costs are a little too increased and who are fighting back against high premiums. Take a homeowner’s group in Alabama known as the Homeowners Hurricane Insurance Initiative, for example. It recently got a law, known as the Clarity Act, passed in its state. The law requires all insurance companies to report losses by zip code. That way, the group and, hopefully, future lawmakers can make accurate analyses of whether or not those high insurance premiums are really warranted.

It’s fairly likely that similar groups in other coastal states will form, following in this Alabama group’s footsteps. If one formed in your area, how would it feel about how your company handles property insurance claims or about the cost of your premiums?

If you don’t think such a group would be too happy with your practices, it may be time to do a little reassessing to make sure that you’re operating a business that is as fair and as reasonably priced as possible. After all, those qualities are what will truly win clients over in the end.


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