As an insurance agent, nothing makes us cringe more than seeing the rates of our trusted clients rise considerably. Unfortunately  in Colorado, this is becoming an epidemic. Take for example an excerpt from an article in the Denver Post by Steve Raabe on June 6, 2012…

Historically, Colorado’s largest property insurance claims have come from hail and wind, not fires.

2009 and 2010 were especially heavy years for insurance claims. In 2009 — the most expensive claims year in Colorado history with three major hailstorms — property insurers paid out $1.69 in claims for every $1 they collected in premiums, according to the Property Casualty Insurers Association of America. The loss ratio in 2010 was $1.37 to $1. […]

But because of the big payout imbalances of 2009 and 2010, experts say homeowners should gird for future premium increases. The amount of increases will vary from company to company and from the risk factors applicable to a particular home or region.

Read the full article here: Colorado wildfires to raise insurance rates in future years – The Denver Post

If you have noticed a worrisome change in your home’s insurance premium, you can possibly save money if you contact your insurance agent. Here are three things you can discuss with him or her:

1. Can you quote my auto?   Many insurance companies offer a discount if you combine your cars in the same company where your home is insured. The discount can be enough, coupled with the items below, to make a significant impact on your savings overall.
2. Am I getting all the other discounts available to me?   There may be a discount that can be applied to dramatically reduce your rate, such as a New Roof Discount if you have replaced your roof in the last few years. It may even make the cost of your new annual premium less than the year before. Maybe you have recently renovated your home, some companies offer a discount for that. Did you recently have an alarm installed in your home?
3. How much can I save by raising my deductible?   Another option to discuss with your agent is raising your deductible – this can lower your rate significantly as well. The average Colorado homeowner has one home insurance claim every 12 years – some households stay claims-free much longer. Let’s say you changed your deductible from $1,000 to $2,500, and your home insurance premium dropped $300 per year; based on current statistics and rates, if you went 10 years claim-free you will save $3,000.

7 Years claim-free = $2,100 Savings
10 Years claim-free = $3,000 Savings
15 Years claim-free = $4,500 Savings

In short, rising premiums are going to happen in Colorado – the key is to outsmart the system together with your agent. So give them a call today.