Recently, I received my homeowners insurance renewal offer, which reflected a 27.8 percent increase in my annual premium.
I contacted the agent and posed the following questions: What lossratio-rate history in the South Carolina coastal area was the basis for the significant premium increase reflected in the renewal offer? If the lossratio-rate history in this area is not the basis for the increase, what is? Is the insurance company attempting to recoup the financial losses from natural disasters experienced in other parts of the country from policyholders in the South Carolina coastal area?
My agent said he knew of no loss ratio-rate information in this area that would justify the increase. He had no further information from the company to share with me. While I fully expect premium increases if we were to have a hurricane, tornado or other natural disasters, I don't believe that we should be subjected to significant increases without apparent justification.
The state Department of Insurance has the responsibility to review and approve proposed insurance rate increases to assure they are justified. I wonder why the department isn't protecting South Carolina residents from these seemingly unjustified increases. Could political influence or campaign contributions from the insurance industry or independent insurance agents be clouding the proper analyses and decisions?
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Michael F. Vezeau
Sun City Hilton Head