Did you know that if a person knew the date of their death, it drives up the possibility that they would buy life insurance by over 60%? If people knew there was a disaster coming of some sort, they all want to run out and buy insurance. Why is that? Maybe not as simple as so they can cash in on the event.
Most individuals who don’t buy insurance or put it off, just do not believe an unfortunate event is going to happen to them. The problem with unfortunate events, we never know when they are going to occur. Most people are terrible planners when it comes to events which have a low probability of causing a loss. They just don’t think it will happen to them.
There have been studies that show insurance buyers will most likely look to insure against common perils or risks which usually cause small losses, instead of large catastrophic risks which have a very low chance of occurring. In essence, people buy based on the chance they can cash in on the insurance, rather than the principle of protecting against catastrophic loss.
If a consumer considers buying insurance, the same way they consider gambling, there is a good chance they will not purchase the insurance. These individuals are looking to invest a small amount of money with the hopes of a large payout. We have all heard the buyer state “I paid in thousands of dollars over so many years and never collected a dime because I had no claims.” In retrospect that is a good thing, since you did not suffer the direct and indirect losses a claim can cause.
Home buying is less than overwhelming – but we are here to help, at least when it has to do with South Carolina home insurance. If you are searching for a home and looking to keep your insurance premium affordable we have a suggestion: before purchasing a home, determine if the home has any construction enhancements which make your home eligible for wind mitigation credits.
If you are coming from an area that does not have coastal exposure, you probably have not heard of wind mitigation, so here is a quick run down:
What is wind mitigation? Basically, wind mitigation means the steps that are taken to make the home more resistant to hurricane and high-wind damage. A strong home has the necessary items to protect for this kind of damage. Fewer damages result in lower or fewer insurance claims and will ultimately reduce the insurance premium.
How do I know if a home has wind mitigation? You can ask your real estate agent if the home has any wind mitigation features or if there has been a wind mitigation inspection completed by the previous homeowner. If you are really interested in the home, you could contact a licensed contractor and ask them to perform a wind mitigation inspection for a fee.
What should you look for in terms of wind mitigation?
- Exterior wall opening protection: hurricane-rated window shutters and impact resistant windows
- Exterior doors: hurricane-rated garage door rather than a standard garage door
- Strength of your roof deck attachment: type of nails and/or longer nails that will help prevent shingle and roof plywood from being blown off in a hurricane
- Roof Cover: Having thicker and stronger hurricane-resistant roof shingles, attached with properly sized and properly applied roofing nails to reduce the chance of your roof shingles blowing off in a hurricane. A newer roof is also helpful!
- Braced gable-ends in the roof framing: Usually done inside the attic to decrease chances that your roof will collapse under hurricane wind
- Reinforcement of roof-to-wall connection: metal tie-down straps that attach roof rafters to wall studs to decrease chances that all or a portion of your roof will lift off of your house during a hurricane
Not only do these steps help you gain a lower insurance premium, but they also help in other areas. South Carolina Department of Insurance states that the Homeowners who select to replace their windows with impact resistance systems and hurricane shutters have reported savings up to 29% in their energy costs.
The coastal insurance marketplace for consumers just improved in South Carolina. Beacon Insurance Group recently finalized contracting with three additional carriers who will be offering choices for South Carolina homeowners insurance.
The new homeowners insurance companies are all rated A or better by either A.M. Best or Demotech rating agencies. The insurance and financial marketplace, along with decreasing reinsurance costs have allowed companies to expand into coastal homeowners insurance writings in South Carolina areas such as Hilton Head Island, Charleston, and Myrtle Beach. This most recent influx in companies and capacity should put pressure for more competitive rates. Homeowners will still find that newer, better constructed homes and higher credit scores will obtain them the best possible rates.
Not every coastal homeowners insurance carrier targets the same types of homes or distance from coastal waters. A thorough review of each homeowner’s situation needs to performed and evaluated. When choosing a carrier, a homeowner should consider the claim paying ability of the insurance carrier. Not all insurance carriers have the manpower or capacity to offer swift claims responses in a catastrophic situation. During testimony before a Senate hearing on Superstorm Sandy, it was claimed the lack of available catastrophic adjusters was an issue in delaying the payment of claims.
Most of the newer companies just began writing business in August 2014. “We have been comparing rates on the new companies with existing companies we represent and we are quite pleased with the competitive options they provide our clients and prospects”, stated Ken Groff, partner at Beacon Insurance Group.
About Beacon Insurance Group:
Beacon Insurance Group is an independent insurance broker located in Bluffton, South Carolina. Beacon is a compilation of experienced insurance professionals who develop innovative solutions for South Carolina Insurance and risk management needs. The South Carolina agency utilizes both innovative and alternative risk methods in strategic planning for their clients. Beacon Insurance Group works hard to understand needs and problems which assist them in providing solutions that are designed specifically for their clients. Beacon’s forward looking approach helps protect their clients from seen and unseen risk factors.
Beacon Insurance Group – the right people can make a difference in your insurance program.
Beacon Insurance Group Expands Coastal Homeowner’s Insurance Offerings
In lieu of a large or even small disaster, knowing exactly what was lost is extremely important. With the ‘Know Your Stuff’ mobile app by Insurance Information Institute, it is as simple as 1-2-3 to keep an up-to-date record of your belongings. All you have to do is take photos of your belongings and fill in some information and details. The app is available for iPhone or Android.