Homeowner Protection Against the Weather and Insurance Premiums
Insurance companies are struggling with financial burdens of their own and their attempts to level out their own issues look to fall heavily on the shoulders – and wallets – of policyholders. Significant increases in insurance premiums will be very costly to consumers and perhaps leave many without protection against destructive weather.
Your McAllen lawyers at Millin & Millin want to protect your family against the actions of bad faith insurance companies and insurance premiums. Mother Nature is unpredictable, but your home and safety should not be compromised because of greed.
We promise to help alleviate the financial problems caused by failed protection of the insurance policies you put your trust and money towards.
Windstorm Insurance Premiums Continue Rising
The Austin American Statesman recently reported that the Texas Windstorm Insurance Association plans to hike up policy prices by 10 percent. If the Texas Department of Insurance does approve these proposed adjustments, then the new rates will become effective by January 2019.
Windstorm insurance is currently available to 14 counties along the Texas coast. It is meant to cover property damages caused by the high-speed winds, hail, and tornadoes that can occur during destructive weather events such as strong storms and hurricanes. The insurance is meant to be a protective measure for Texans in these high-risk areas, but the rising prices are causing a dent in consumer’s wallets without the protection promised.
The last increase in insurance premiums in Texas was in 2017, prior to Hurricane Harvey’s arrival. It led to a $79 annual policy increase on the average premium of $1,600 for the year of 2018. With the current trend of increasing rates, the dollar increase of windstorm insurance premiums will reach an additional $160 per year by 2019.
Drastic Adjustments to Flood Insurance Policies
Windstorm insurance is just one of the many insurance policies that are taking a toll on homeowners. Flood insurance premiums are on the rise as well. Industry forecasts predict a staggering 15 to 20 percent hike in flood insurance policies by 2019. This is no small adjustment from the 8 percent increase during 2018. That increase alone caused the average premium of flood insurance to rise to $1000 per year.
It is evident that the insurance industry does not have its customers’ best interests in mind.
What is the NFIP Doing Wrong?
The National Flood Insurance Program (NFIP) is suffering bad financial circumstances. The program’s inability to bring in as much as they pay out has left them in a $20 billion dollar debt. This is after $16 billion dollars worth of debt was recently forgiven. The unwavering amount of debt means that attempts to level out will require companies to charge policyholders more for protection.
An evident flaw of the NFIP is their inability to price premiums based on risk analysis. Instead, they charge according to the history of storms and flood maps of locations. Not to mention that high-risk areas are not always protected. For example, less than half of Florida has flood insurance.
The flawed pricing methods and the lack of coverage in high-risk areas results in debts that fall upon the policyholders.
The life-altering circumstances that result from drastic weather conditions are enough to worry about. Consumers should not bear the burden of insurance companies’ attempts to recover from their mistakes. You deserve the protection that you pay for without the worry of premium increases that break your bank.
The McAllen insurance lawyers at Millin & Millin support individuals facing the rising costs of insurance.
Our experienced team of attorneys wants to help get you the protection you deserve. Don’t let bad faith of insurance companies unlawfully deny your claim or underpay you. You should always feel protected and financially secure.
Don’t weather the storm alone. Call the reliable attorneys at Millin & Millin today at (956) 631-5600 for a free consultation.