Rosalyn Binday, Founder
Advocate Brokerage Corp.

You won’t like hearing this, but we believe 2012 is a prelude to insurance rate increases across the board. As climate change rears its ugly head, Mother Nature may even become surlier.

These natural catastrophes are causing insurers to rethink their pricing. Sooner or later, depending upon where you live, it may become more difficult to find affordable insurance coverage…especially if you own coastal or hurricane-prone property. This is one of the rare occasions that we hope to be wrong.

Why do we think this? Weather-wise, 2011 has certainly proven to be a memorable year for insurers. As of December 2011, there have been 98 providentially declared disasters affecting 45 states and territories. Here in the Northeast, large metropolitan areas have experienced damaging hail storms, crippling blizzards, and record heat waves.

Wind-related claims are also abundant during strong thunderstorms, as wind gusts can peel off shingles and make projectiles out of tiles and roofs can be ripped off and blown to the moon. There are earthquakes and floods…some covered by insurance and, some not. And let us not forget the trees with overhanging tree limbs that can come crashing down on houses, cars, etc…. and can also become projectiles. In fact, anything not tied down can become a projectile when strong winds blow.

Events that occur elsewhere in the country still effect us…like killer tornadoes and drought conditions in the West the cause severe wildfire activity. Clearly, if the cost of construction material escalates, it affects us all regardless of where we live. The gist of the matter is that the number of covered claims citing weather-related damages has skyrocketed. Settling a slip and fall on snow and ice, a hail claim, or a lightning strike that burns down the house is costly. Not that we are crying for the poor insurers, but it is interesting to note that even when there is no pay-out on a loss, there is a significant cost to investigate and determine whether a payout is due.

According to A.M. Best’s report, the industry’s investment performance was impacted by the low interest-rate environment, volatility in the equity markets and widening credit spreads. Personal, commercial and U.S. reinsurance lines reported significant underwriting losses. The industry as a whole, reported underwriting losses of $30 billion, compared to $2 billion from the same period in 2010.

STICK WITH US. If the going gets tough, one of the many good reasons for having an independent insurance agent is that we have knowledge about the pulse of the market and the available choices. Representing many, many carriers, each with different outlooks and appetites, we are in this together…and we are at your command!

For all your insurance needs, contact Advocate Brokerage of Scarsdale avenue, Scarsdale NY 10583

Phone: 914-723-7100 or go to their website for a free no obligation Insurance price quote – www.Advocatebrokerage.com