According to NOLA.com, where Katrina raised prices and handicapped policy holders with higher premiums, the national recession is continuing the trend.
In an article published today on NOLA.com, the specter of rising costs has many people facing the hard decision of paying more or cutting coverage.
Insurers can’t make the investment returns they’ve made in the stock market in recent years and they’re unable to raise new money from investors, so they can’t support as many policies on their books. Meanwhile, reinsurance rates have risen as companies try to buy more coverage and because 2008 was the second-worst year for disasters worldwide, costing the insurance industry more than $50 billion.
With few options for raising capital, insurers need to shed policies from their books and raise rates to make the numbers work.
In the event of a hurricane, this shortened coverage means that damage will no longer be reimbursed and families will face even worse hardships than they do today. With policy holders cutting coverage, though, agents may become more vague with what policies do and don’t cover. This is extremely problematic for individuals who are unfamiliar with insurance law and raises the importance of having a full understanding and conversation with your agent, as well as the assistance of an attorney if the worst happens and your claim is denied unreasonably.
If you feel your policy claim has not been handled properly, contact the Berniard Law Firm at 1-866-574-8005 and an attorney will discuss with you your best legal options.