Property Insurance Pricing Warning

There could be an increase in your property insurance so pay heed! The insurance industry and homeowners are facing difficulties this year due to claim frequency.  One of the issues in 2017 was faulty Chinese copper pipes. From 2017 to now, the major issue is the fires that ravaged Northern California.

The copper piping installed in the late 1980s until the early 2000s is starting to fail.  Many builders are being sued by homeowners due to the copper pipe problem and some builders have gone out of business.  The copper pipes that were made in China flooded the marketplace during this time that builders used to install in homes. The copper used was poor in quality and is now starting to fail.  The leaks in the pipes are called “pinhole” leaks that can break or leak which cause serious damage to flooring and walls.  You most likely know someone that has had a pipe break or pinhole leak! The average water loss per claim paid out is about $24,000 in Southern California with losses going up each year.

Your property insurance, as a result, could increase.

The loss due to wildfires alone in California in 2016 was 1.5 Billion. That’s billion with a B.

What can you do about it?

When getting property insurance, you should make sure you get a policy written on an all-risk basis. This type of policy will cover you for almost anything. If your local area is in a danger zone for fire or flood and other calamities, you should consider getting other insurance. An experienced property insurance agent can help you with a special program for your home or business based on your needs.

The cost to replace your property will be at current prices for that property. To protect yourself, be sure to purchase replacement insurance with an insurance guard and review the limits on your policy to ensure you are well protected.

Shop around!  Finding the right policy at the right price is the key. Try bundling your car insurance, obtain an alarm system, increase your deductible, cut away the brush, and re-pipe your home.  There are quite a few membership programs available too that have great rates and options. Having a local professional insurance agent that knows the market will help.  You might be surprised by the different ways you can save money and obtain better coverage.