Friday, June 19, 2009

American Family Increases Home Rates

I was watching Fox 6 news last night while getting ready for bed and they had their Business Journal Minute that gave some details on a rumor I have been hearing for the last few weeks. American Family Insurance is increasing their Home rates by about 10% this year. This comes after an increase of about 11% last year. The Business Journal has the short article here.

While almost every insurance companies makes adjustments on an annual basis, these increases are quite high. Most of the companies we represent are still only adjusting their rates by 1 or 2 percentage points and many of them are midwest based companies too.

Oddly enough the midwest has always been a better place for insurance companies to operate simply because we don't have the hurricanes, mud slides, wild fires, etc that the coasts get hit with on a regular basis. However, the last few years the midwest has gotten hammered with hail storms, heavy rains and bad snow storms.

These types of increases by insurance companies are one of the main reasons we are an independent agency. If one of our companies increases rates by too much we have many other companies that are willing to accept the business at better rates. At least then you as the client just have to get used to a new company, not a new agent and a new company at the same time.

As always, quotes are free and we love referrals give us a call or tell your friends. Every referral earns you a $10 gas card just for sending your friends and family to YOUR FRIEND IN INSURANCE!