Insurance Poor – Article by: Phoebe Wills, Broker, GRI, SRES of The REAL ESTATE OFFICE

Blog Article Submitted by: Phoebe Wills, Broker, GRI, SRES of The REAL ESTATE OFFICE

Have you checked your insurance premiums lately? I have several friends in the insurance industry who have mentioned that rates are rising. It’s in the news that major insurance companies are not writing any new policies in many coastal cities due to storms, fires and natural disasters. That shouldn’t affect us here in Knoxville, right?

It affects every person in every state. I checked my homeowners and auto policies from 2021-2023. In that two year span, my homeowners and auto insurance went up over two hundred per year. That’s four hundred per year. While some people can absorb that and shrug it off, others who are already suffering can’t. This is just stacked on top of all the other items that have gone up the last few years.

Another unfortunate by-product of this is when people get tight financially and can’t pay one of their bills. Insurance tends to be one that affects nothing immediately. Insurance is an intangible. You can’t touch it, eat it, or ride in it. So, speaking in a general sense, it’s the first thing we let go of when times get hard.

Consider H.O.A. fees. In the Condominium world, some insurance is covered in your monthly dues. Those rates keep rising, your H.O.A. dues keep rising. Plus, if your mortgage requires your homeowner’s insurance and taxes be part of your monthly payment, then your house payment goes up. All of these things combined can put those who live paycheck to paycheck in a financially strained situation.

Check your policies. If you’re struggling financially, try to come up with a budget to eliminate things that are wanted, but not needed. Check with different insurance carriers to see where you can trim if possible. Sometimes tightening our belt is the only solution. I know that I intend to delve in to discover where and how I can make modifications.