Happy Wednesday! In this week's Big I Buzz, we are discussing 9 mistakes homeowners make when filing an insurance claim and a look at Q3 personal and commercial lines rates.

9 Mistakes Homeowners Commonly Make When Filing an Insurance Claim

According to the Insurance Information Institute's (Triple-I) review of claims date from 2017-2021 about 1 in 20 home policyholders will have a claim each year. Here is a list of nine common mistakes homeowners make when filing an insurance claim, according to Forbes Advisor: 

9. Filing too many claims - Insurance companies consider previous claims history when setting rates, and policyholders with a record of filing claims are likely to be considered a higher risk of generating more claims in the future. Forbes Advisor noted that sometimes it is wiser for a homeowner to pay for small repairs rather than filing a claim. 

8. Cleaning up too fast - While most people want to clean up after an accident as soon as possible, homeowners who have a loss such as a fire or flood should wait until all the damage is properly documented.

7. Not documenting damage - Forbes Advisors noted photos are a policyholder's friend when filing a claim and ideally they would have photos before and after the loss event. 

6. Waiting to file a claim - Policyholders shouldn't delay when filing a claim as this only prolongs the time it will take to get the property repaired. 

5. Not communicating clearly - Homeowners are often less than clear when describing property damage, and this poor communication can result in delays in the claims process. 

4. Not maintain a property - Insurance covers unexpected damage, not issues caused by failing to properly care for a home. Neglecting to correctly maintain a property can lead to a claim being denied, according to Forbes Advisor. 

3. Not having a home inventory - A complete list of a home's contents is a vital tool when dealing with an extensive loss. 

2. Having the wrong coverage - Along with not understanding what is covered, having the wrong type of coverage is a common mistake, according to Forbes Advisor, which gave the example of misunderstanding exclusions or confusing actual cash value with replacement cost. 

1. Not reading the policy - Not understanding what a policy covers can lead to disappointment when a homeowner goes to file a claim for an event that isn't covered, such as flooding. 

Read more here. 

Personal and Commercial Lines Rates Moderate in Q3

The third quarter of 2023 witnessed notable trends in the insurance industry, as reported by MarketScout. Personal lines in the United States held a composite rate of 4%, showing insurers' growing confidence in their results. However, concerns arise due to the record-breaking heat of the summer. For personal lines, home rates showed moderate increases, with homeowners under $1,000,000 value up by 3.7% and homeowners over $1,000,000 value up by 5.3%. In contrast, commercial insurance rates saw a more tempered rise, with business owners' policies (BOP) experiencing an increase from 3.2% to 5%. While reinsurers have been strict in the past, they are now showing signs of moderation, which is translating into better terms for insurers and customers. Increased interest rates are also contributing to the moderation in rates. The report suggests that some property underwriters anticipate ongoing rate hikes, potentially driven by the hottest summer on record in 2023. Furthermore, a report from the Consumer Federation of America highlights that CEOs of the top 10 personal insurance line businesses received substantial compensation as insurance prices continued to surge. Read the full article here. 

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