Cheaper rates as a result of this years calmer hurricane season
Home prices are relaxing as the end of the 2013 hurricane season is in site. Dallas-based Market Scout says that homes under $1,000,000 and automobile exposures are being assessed at lower rate increases in October at plus three percent as compared to plus four percent in September.
“Homeowners and auto coverages on traditional accounts are enjoying premium reductions largely due to little catastrophe activity, but the high value personal lines market actually assessed a month on month rate increase on their insureds,” explains MarketScout CEO Richard Kerr. “We expect the difference in pricing among traditional vs. high value accounts is due to the fact that high-net-worth insurers provide significantly broader coverages, which ultimately result in more claims. Many of these type of claims would not be covered by traditional markets. Thus, the need for a little higher rate.”
An in-depth look at the numbers
|Homeowners under $1,000,000 value||Up 3%|
|Homeowners over $1,000,000 value||Up 5%|
|Personal Articles||Up 2%|