COLORADO SPRINGS, Colo. (KKTV) – Southern Colorado saw a series of damaging hail storms over the summer. Now, insurance companies say home and vehicle owners will likely see the results in their bills.
According to Veta Enright, an agent with Your Insurance Lady, rates are likely to go up an average of 20-30% across the board.
“Obviously the cost of materials has gone up, the cost of labour has gone up,” Enright said.
Overall, costs have gone up because of inflation, but she added that the storms have had a greater impact. USAA told 11 News that one bad storm isn’t usually enough to have an impact on rates because of the many other factors that go into those numbers. But Enright said persistent storms can create an environment where insurers start to charge more.
“In Colorado, especially on the Front Range, we have hail, we have rain, we have fire, so all of those things come into play, and the carriers take a look at that,” she said.
Enright also said she has seen more deductibles, as well as an unwillingness by carriers to cover those who file them.
“It used to be three claims in five years and your carrier wouldn’t want to cover you,” Enright said, “now I’m hearing about carriers dropping people after just one claim.”
It’s a problem that one homeowner, Luis Reyes, said he’s noticed as well. He said he increased his deductible, but still saw his rates go up.
“Yeah, I’m taking more deductible to bring it down and it didn’t help at all, my insurance went up $500 last year,” he said.
Reyes also says the cost of repairs has gone up. While he hasn’t had to make many repairs himself this year, he compared it to 2016, when he said he had $45,000 worth of damage to his home from storms.
According to the Rocky Mountain Insurance Information Association, 2016 was the most expensive year on record for storm damage. They reported that one city, Colorado Springs, spent $352.8 million on repairs. Adjusted for inflation, that’s $445 million.
While the numbers for 2023 aren’t in yet, Reyes said he doesn’t think it’s worse than 2016, but he’s still seen people spend a lot on repairs.
“Rates have gone up more than they did in 2016,” Reyes said.
Enright said there are ways to reduce those costs.
Higher deductibles: She said taking on a higher deductible and retaining more risk can significantly lower rates.
Stay with your provider: According to Enright, carriers are less likely to cover someone who jumps from carrier to carrier.
Talk to your agent: Enright said talking to your agent can help you avoid being dropped for filing a claim, as speaking to them directly can help you find out if you’ll be dropped. She also said they can help you find additional credits, such as loyalty credits, that can lower your bills.
Bundle your policies: Enright said bundling home and car insurance can help keep your payments lower.
She also said it’s important to understand your policies, your options and your rights when it comes to finding the lowest rates.
