John Vokey Risk Advice Blog 06222023

Talk to a Risk Advisor: Homeowners Insurance Marketplace

Blog Post by Personal Lines Account Manager - John Vokey, CIC 

If you have received a homeowners’ non-renewal notice, or your premium increased drastically you may wonder “why?”

Due to the frequency of major catastrophic events, insurance companies have suffered tremendous losses within the past few years, particularly reinsurance. These losses weren’t just due to hurricanes, but included wildfires, earthquakes and more. These events have placed upward pressure on insurance premiums.

Insurers purchase “reinsurance coverage” to hedge their losses should major, catastrophic claims arise. If a major catastrophe such as a hurricane, or wildfire were to occur, insurers can then spread the losses amongst these reinsurers. This helps make the insurer a more financially secure, claims paying company for its policy holders.

As the frequency of catastrophic claims increases, reinsurers absorb significant losses. They in turn then seek to recover their losses by raising rates or refusing to renew coverage in higher risk areas, thereby forcing insurers to pay more for their insurance. This cost is passed along to the consumer with increased premiums or non-renewed policies.

The increased cost of construction compounds the situation – insurers now must pay substantially more to rebuild damaged properties than before the pandemic, further forcing up rates.

Contact us at 800-800-8990 or visit us at to review strategies that will maximize your protection and minimize your costs in this rate sensitive environment.