I just made a few more calls. It seems the Insur companies have to request from each state for rate increases. A source I found said in Oklahoma Allstate has been hit the hardest and requested a 48% increase, the highest requested of the big 3 here for residential. These being Allstate, State Farm and Farmers. The others 2 of the aforementioned have been requested increases too. They verified several smaller names will be dropping customers in this region, prefering businesss in less weather tramatic areas. Shelter ( A big name regionally) said they are not pulling out and have not filed for a rate increase (but said that does not mean they wont later in the year).
Reasons here are not being sited as NY. They are siting our own weather problems.
The central states in and around Oklahoma have suffered 4 years straight of record claims. 100 year ice storm 2002, 80 year ice storm 2001, the first F6 tornado on record,as well as many f4’s along with widespread hail claims in 1999 and 2000. Many insurers are leaving the area. The rest are increasing fees. I KNOW it is happening in Oklahoma. I am TOLD this is flowing over into surrounding states…how far I dont know.
The states centering on Oklahoma are incurring 50%-100% increases in hazard insurance starting with renewals as of March 2002. Be forewarned that some companies will be dropping this region entirely. Position yourself with a company that plans on staying with the region. If you get dropped…for any reason…and go to one of the companies staying…you may pay up to a 200% increase. If you quit and go to another you will not sufffer the “dropped” penalty of 200%…merely the 50-100% increase of a policy renewal. Information from Allstate and Shelter.
An associate of mine is with a major carrier. 3 of his 6 rentals came due in March for hazard renewal. He incurred a 100% (a doubling) increase on 2 houses and a 120% increase on the other. He is increasing his rents 5% as a result…in a year as his leases allow.
My Ins on my rentals doubled.I was told by my agent that most Ins companys were pulling out and the ones that were writing policies are charging double to recoup loses since 9-11.So I found a new agent who has a Ins company who writes for the same price as before.Shop around,you may find the same rates you once had.