Don't Let Your Home Stand Alone.

It is more important than ever to insure your Home and Auto insurance with the same carrier. It's no longer just about multi-policy credits and convenience. Stand-alone Homeowners insurance policies (meaning those without a companion Personal Auto policy) are facing drastic renewal premium increases and many times those with any claims activity are not being offered renewals at all. And finding a replacement Homeowners policy if you don't have a Personal Auto policy with which to package it, is extremely difficult, even when you've had no prior losses.

Why are insurance companies taking these steps NOW when in prior years they were all too happy to write a Homeowners policy either with or without your Auto policy? Weather. Investments. Profitability.

Catastrophic weather events in the second quarter (April, May, and June) of 2011 alone exceeded $15 billion countrywide. These losses are the highest on record for a second quarter. Massive amounts of claims were paid in greater proportion than the premiums collected while investment income was at an all-time low. In 2011, the industry had a combined ratio of 107.2% which means that for every dollar of premium collected, they paid out $107.20. But 2011 doesn't stand alone, the Property and Casualty insurance industry has only made a profit on homeowners insurance in four (4) out of the last twenty (20) years. Hardly a sustainable scenario.  So strategies to turn this losing proposition around for many insurance companies now include requiring each Homeowners policy be paired with an Auto policy and, as mentioned above, to either non-renew or renew current "stand-alone" homes with substantial rate increases. An insurance policy is after all a promise... a promise to help you recover from your losses. Part of this promise is assuring they will have the resources available to help you when you need them.