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As we welcome the spring season, we are also bracing for the inevitable spring storms that come with it. At Navigate Agency, we understand the importance of being prepared for these natural events, especially given the rise in extreme weather conditions in recent years. While many may immediately think of floods when discussing storm damage, it's crucial to acknowledge that spring storms can bring a variety of challenges to homeowners. Spring storms, characterized by heavy rainfall, high winds, and sometimes hail, have the potential to cause significant damage to properties. It's a common misconception that only areas prone to flooding are at risk. In fact, storm-related damage can affect any home, regardless of its location. This makes it imperative for homeowners to take proactive steps in protecting their property. Understanding the Risks Before delving into protective measures, let's consider some statistics that highlight the severity of storm damage: Floods are recognized as the most common and widespread natural disaster. Surprisingly, about 20% of flood claims are filed from areas that are deemed to be of low to moderate risk. A mere inch of floodwater can result in damages exceeding $25,000 to a property. Over the last decade, the average claim for flood damage has been around $30,000. These figures illustrate the financial and emotional toll that storm damage can inflict on families and communities. It's a clear indication that no one is immune to the risks posed by spring storms. The Importance of Insurance One critical aspect to consider in your preparation is insurance. Many homeowners may not realize that standard homeowners insurance policies typically do not cover flood damage. This oversight can lead to significant financial strain in the event of a storm. Hence, assessing your insurance coverage and considering the addition of flood insurance is a step that cannot be overstated. Flood insurance provides an essential safety net, ensuring that you're not left to shoulder the financial burden alone. Whether you're located in a recognized flood plain or an area considered to be at lower risk, the possibility of flooding remains a concern. The peace of mind that comes with having adequate coverage allows you to focus on recovery and rebuilding, rather than how you will afford it. Taking Action If you're contemplating the addition of flood insurance or have questions regarding your current policy, the team at Navigate Agency is here to assist. We're committed to offering information, support, and personalized quotes to ensure that your property is protected against the unpredictable nature of spring storms. Protecting your home from the impacts of spring storms is more than just a precaution; it's a necessary step in safeguarding your family's future. Let Navigate Agency guide you through the process of securing the right coverage for your needs. Reach out today to start a conversation about how you can better protect your home this spring and beyond. Remember, preparation is key to navigating the challenges posed by spring storms. Take action now to ensure your home is ready to withstand whatever the season may bring.

Gifts hold sentimental value and often come with a significant price tag, especially items like jewelry or sports memorabilia. As a homeowner, you might wonder if your insurance policy provides adequate coverage for these valuable possessions. While homeowner's insurance typically offers protection for personal belongings, there are nuances to consider when it comes to high-value gifts. What Does Homeowner's Insurance Typically Cover? A standard homeowner's insurance policy typically covers personal belongings within your home, including furniture, clothing, electronics, and other valuables. However, there's often a limit on the coverage for certain high-value items, such as jewelry, artwork, collectibles, and sports memorabilia. Coverage Limits and Special Limits Insurance policies often come with coverage limits for specific categories of items. For instance, while your policy might provide coverage for personal belongings up to a certain dollar amount, it might have a sub-limit for categories like jewelry or collectibles. For example, your policy might cover personal property up to $100,000, but it could limit coverage for jewelry to $2,000 per item. Therefore, if you own a valuable piece of jewelry worth $5,000, your policy might only cover $2,000 of its value in case of loss or damage. Scheduled Personal Property Coverage To adequately protect high-value items like expensive jewelry or rare sports memorabilia, homeowners can opt for additional coverage through what's known as scheduled personal property coverage or a personal articles floater. This additional coverage allows you to specifically list individual items along with their appraised value. By doing so, you can ensure these items are fully covered up to their appraised value, often without a deductible. Steps to Ensure Adequate Coverage for Valuable Gifts Appraisals: Obtain professional appraisals for high-value items to accurately determine their worth. Document Everything: Keep records of receipts, certificates of authenticity, and any other relevant documentation for these items. Review Policy Limits: Understand the coverage limits in your homeowner's policy and consider additional coverage for items that exceed these limits. Discuss with Your Agent: Consult your insurance agent or broker to discuss the specifics of your policy and explore options for additional coverage. While homeowner's insurance offers protection for personal belongings, including valuable gifts like jewelry or sports memorabilia, the coverage might have limitations. Considering the sentimental and monetary value attached to these items, it's essential to assess your insurance policy's coverage and consider additional options to ensure adequate protection. Navigating the intricacies of insurance coverage for high-value gifts can be complex, but being proactive in understanding your policy and seeking additional coverage when necessary will provide peace of mind in safeguarding your most cherished possessions. Remember, each policy and insurance provider might have different terms and conditions, so it's crucial to review and customize your coverage according to your specific needs.

In the world of homeowners insurance, a transformation is underway, and its impacts are weighing most heavily on prospective homebuyers looking for their slice of the American dream. Whether you’re a buyer embarking on this journey for the first time or an experienced real estate or mortgage professional guiding others on this path, there’s no sugarcoating it —the insurance market is in the throes of significant change, and the way forward may not be easy. Despite the uncertainty, the good news is you don't have to go it alone. Working with industry experts who know how to proactively navigate the shifting market can help you or your clients achieve their home-buying goals with confidence and clarity. In addition, knowing what's going on in the industry will help buyers of all types have realistic expectations and make informed decisions for their futures. My hope is that this article will provide the information you or your clients need to buy a home in a tight insurance market. With this in mind, let's examine market conditions and then dive into the “choppy waters” you or your clients might encounter in 2023 and beyond. What is a tight insurance market? A tight insurance market is a term used in the insurance industry to describe a period marked by soaring premiums, limited availability, and stringent underwriting standards. In such a market, consumers may pay higher premiums for various insurance policies, including auto and home insurance. Businesses may also have to adapt by raising prices or cutting costs to offset their increased insurance expenses. Unfortunately, the premium hikes witnessed this year are not isolated incidents but a widespread concern within the industry. What factors contribute to a tight insurance market? While there are many contributors, severe weather, lingering inflation, and higher building materials costs are primarily to blame for the current market conditions. Even if you don’t live in a region directly impacted by hurricanes or wildfires, your premiums may rise as insurers try to compensate for catastrophic events. As of September 11, 2023, the U.S. had experienced 23 confirmed weather and climate disaster events , each causing losses exceeding $1 billion. These events include flooding, severe storms, tropical cyclones, wildfires, and winter storms. Here are some examples for added perspective: Hurricane Idalia (August 2023) - estimated $20 billion in damage Maui wildfires (August 2023) - estimated $4-6 billion in damage Texas hail event (May 2023) - estimated $1 billion in damage Carriers simply can’t keep up, forcing them to pass on rising reinsurance costs to consumers or stop offering services altogether—particularly in coastal states like Louisiana, Florida, and California. As a result, consumers everywhere are shouldering the burden of those hardest hit by severe weather and subsequent carrier departures. What does the tight market mean for prospective homeowners? It’s no surprise that, given these conditions, a tight market impacts home buyers, making the process more challenging and expensive. Here are some of the “choppy waters:” Increased Premiums Gone are the days when homeowners insurance was an afterthought in the buying process. With homeowners insurance skyrocketing 19.1% between 2018 and 2023 across the 50 states and D.C., buyers and their real estate professionals must have the insurance conversation early and often as rising rates impact purchasing power and monthly mortgage payments. In 2022 alone, North Carolinians experienced the most significant increase in homeowners insurance premiums nationwide at 12.4%. While NC residents can attribute a portion of the 2022 rate hike to a new policy that took effect on June 1, 2022, the overall increase is significant and squeezing the household budgets of already-inflation-weary families. According to experts, homeowners insurance premiums may increase nationwide by 9% this year. Closer to home, rates could jump as much 19.6% in 2023 and 19.2% in 2024 but these projections are usually negotiated down before taking effect. Keep in mind, however, rates are rising. One NC carrier raised rates earlier this month - and plans to increase them again on December 23, 2023. Reduced Availability As mentioned above, carriers may withdraw from certain markets altogether during tight insurance cycles, making it difficult for prospective buyers to find any coverage at all. States like Florida have been forced to dive head-first into the industry by funding their own state-backed programs. But even those programs aren’t immune from steep premium increases. Limited Choice of Insurers and Coverage Options A tight insurance market may limit the number of insurers willing to provide coverage in a particular area or for certain types of homes, drastically reducing the ability of home buyers to shop around for the best rates and coverage options. Moreover, insurers willing to offer coverage may become more selective in the types of properties they insure. One major insurance company in NC currently refuses to write policies for homes with roofs over four years old. Another major carrier has a ten-year age limit. In the past, twenty years was the norm. Higher Deductibles Insurers may offer coverage but attach higher deductibles as a way to manage risk. Right now in North Carolina, one carrier is willing to writing new homeowners insurance policies but requires a minimum $5000 deductible. This means buyers may need to accept higher out-of-pocket costs if they file a claim or have robust emergency funds or savings accounts to cover less than catastrophic losses to their property. Stricter Underwriting Requirements Before providing coverage, insurers may also impose stricter underwriting requirements for home inspections, upgrades, or repairs. Meeting these requirements can add time and expense to the costly home-buying process. Impact on Mortgage Approval Mortgage lenders often require borrowers to have homeowners' insurance in place before closing on a home purchase. If insurance is tight to come by or expensive, it can delay the process or jeopardize the mortgage approval. 4 Tips for Navigating a Tight Property Insurance Market as a Prospective Home Buyer If you hope to buy a home in the coming weeks or months, here are four tips to consider: Begin shopping for insurance early in the home-buying process to ensure ample time to find suitable coverage. Collaborate with an experienced insurance agent who can guide you through the market complexities and help you find the best available options. Consider bundling your homeowners' insurance with other policies like auto insurance to secure discounts. Once you move in, take steps to make your home more insurable, such as improving safety features or addressing maintenance issues that may raise concerns for insurers. Over the years, we've proudly assisted thousands of North Carolinians in securing their homeowners insurance, and we’d love to extend the same support to you. Please don't hesitate to reach out if you wish to talk further. Whether you prefer to send us an email or give us a call, we’re here to help you navigate the insurance market and reach your goals of homeownership.

Change is a constant in the world of business, and the insurance industry is no exception. Recently, the insurance landscape saw significant shifts with the exits of two prominent players: Kemper and Nationwide. These exits have sparked discussions and questions about the potential impact on policyholders and the industry as a whole. Let’s take a closer look details of Kemper and Nationwide's recent exits, shedding light on the factors at play and what it means for insurance consumers. The Kemper Exit Kemper, a well-established name in the insurance industry, surprised many with its decision to exit the preferred home and auto insurance market. According to a statement from the company, they will “actively reduce the business immediately,” with all policies being non-renewed or canceled in accordance with applicable state laws. One key factor cited for Kemper's exit was the evolving risk landscape. The company had been grappling with increasingly complex and unpredictable risks, such as those associated with climate change and cybersecurity. The President and CEO, Joseph P. Lacher Jr, says that the insurance industry is dealing with “the most disrupted personal lines environment we’ve ever experienced.” These challenges posed a significant strain on Kemper's resources and risk management strategies. Another noteworthy aspect of Kemper's exit was its strategic realignment. The company opted to focus its efforts on specific lines of business where it could leverage its strengths and expertise more effectively. According to the press release, Kemper Life and its specialty auto business, Kemper Auto, will not be affected by these changes. The Nationwide Exit Nationwide, another household name in the insurance industry also made waves with its recent exit from commercial auto and changes to personal auto. Nationwide ceased writing certain new policies on July 15th as the company gets its bearings after catastrophic weather and economic challenges. Nationwide will now require pre-quote documentation for new personal lines business, allowing them to review potential new business before providing quotes or coverage. This change is expected to reduce new business but won't eliminate new quotes. According to a Nationwide representative, the decision was impacted by “strong headwinds brought on by the economic environment, catastrophe weather events, and the impact of inflation [that] continue to impact the entire insurance industry.” Additionally, Nationwide's exit was influenced by changing consumer preferences and behaviors. The rise of digital platforms and insurtech innovations prompted Nationwide to reassess its distribution and service models. By embracing these changes, the company aimed to stay competitive and ensure that its offerings remained relevant and accessible to a new generation of insurance consumers. Impact on Policyholders Amid these exits, policyholders may understandably have concerns about the status of their insurance coverage. Both Kemper and Nationwide have reassured policyholders that existing policies will be honored and claims will be processed as usual. However, policyholders may want to take this opportunity to review their coverage needs and explore alternative options to ensure they have the best protection moving forward. Industry Implications Kemper and Nationwide's exits reflect broader trends within the insurance industry. Insurers are constantly adapting to changing market dynamics, technological advancements, and evolving consumer expectations. As traditional players realign their strategies, it creates space for newer, more specialized insurers to step in and fill the gaps. Furthermore, these exits underscore the importance of diversification and strategic planning within the insurance sector. Companies that can effectively manage risks, leverage technological innovations, and tailor their offerings to meet evolving customer demands are likely to thrive in this dynamic environment. The recent exits of Kemper and Nationwide from certain lines of business serve as a reminder that the insurance industry is in a constant state of flux. As policyholders, it's essential to stay informed about changes in the market and regularly assess your coverage needs. While these exits may bring uncertainties, they also open doors for innovative insurers to offer tailored solutions and services. Embracing change and seeking out the best insurance options for your unique needs will help you navigate the evolving insurance landscape with confidence.

If you're an expert in the real estate and mortgage industries, you are well aware that the housing market operates in a dynamic ecosystem where various factors influence the buying and financing of homes. While interest rates, housing inventory, and economic conditions are commonly discussed, one crucial aspect that can significantly impact closed home sales and loans is the state of the insurance market.

Hello there, parents, grandparents, aunts, uncles, and caregivers! As the back-to-school season is in full swing and our little ones are getting into the rhythm of a new academic year, it's essential for us, the adults, to take a moment to focus on our own goals for the upcoming year. As your dedicated insurance agency, we understand the hustle and bustle of this time of year and want to offer our support in ensuring you and your family have a successful and worry-free year ahead.