3rd Quarter 2011 Newsletter
3rd Quarter 2011
Across the Industry - Insurance Premiums Are on the Rise
Wall Street Journal
By Chad Terhune and AnnaMaria Andriotis
Already plagued by stubbornly low home prices, homeowners soon may be facing another blow: rising insurance premiums.
After five years of relatively stable premiums, some of the country's biggest insurers have raised rates-or say they plan to. Premiums vary by state, but last year, State Farm Mutual Automobile Insurance Co. says it increased homeowners rates 7.3% on average and, this year, has raised them in 18 states, including a few by more than 7%. By contrast, it cut rates in just two states.
In Florida, upscale insurer PURE Risk Management raised premiums 11% this year. Fireman's Fund Insurance Co., a subsidiary of Allianz SE, says it has started to raise premiums in some areas. For some Pennsylvania homeowners, premiums shot up 33% last year.
Risky Business: Insurance Industry Entering ‘New Era' of Catastrophes
Insurance Journal
By Patricia-Anne Tom
Given the recent flooding, hurricanes and earthquakes, it appears the number of catastrophic events that inflict mass casualties and severe economic losses has increased - so much so that Dr. Erwann Michel-Kerjan, managing director of the Wharton Risk Management and Decision Processes Center in Pennsylvania, says the world has entered into a "new era of catastrophes" that will redefine the insurance industry.
"For many years, people had the very reassuring assumption ... about extreme events ... that we'll maybe see a major catastrophe every 20 to 25 years. That was very reassuring in the sense that you really don't have to pay attention to that every day," he said. "The conventional wisdom that these extreme events are of low priority [doesn't hold true] in the world where we're more interdependent with each other."
Trees and Landscaping Coverage - Commonly Asked Questions
Question: One of my trees fell on my home during a storm. Do I have coverage for tree removal?
Answer: Yes, if a tree fell and damaged a covered structure, the policy provides up to $500 for tree removal. Note: The cost to cut and/or lift a fallen tree off of the "covered structure" and drop it to the ground is calculated as part of the cost to repair the "covered structure".
Share AFI with your Children
When our members send us the names of prospective new members, AFI grows. Please help by referring the names of your children. Through your membership they are eligible for the same benefits and personal service that you enjoy. Call 800-255-6792 and a customer service representative will be happy to assist you. And just for referring your adult children to AFI, we will send you a complimentary mini flashlight as a thank you.