Supply chain issues and inflation led to rate hikes for auto and home insurance in June.
Greensboro, NC – You should have noticed an increase in your insurance rates this June. The NC Insurance Commissioner approved an average 7.9% increase for auto and home insurance policies to fight inflation.
This isn’t the only climb you’ll see. Due to supply chain issues and rising inflation, the cost of remodeling your home has increased, meaning you need more insurance to cover your home.
We spoke to Christopher Cook from Alliance Insurance Services and answered your questions about insurance and why you pay for what you do.
Here are the answers to your most important questions:
Q: There was an accident that wasn’t my fault. Why am I paying too much for my insurance?
A: Cook says an insurance company will say they haven’t increased their rates. What they are doing is taking away your eventless release. “It still feels like an increase in rates to you, and I understand that,” Cook said. “Unfortunately, you missed an event-free discount and you feel like your prices have gone up, and they definitely have.
Cook also says there’s a statistic in the insurance industry that has stood the test of the past century, people through no fault of their own are more likely to have an accident in the next five years.
Q: When is my home covered by flood insurance?
A: Cook says “flooding” is not water damage caused by the water in your home. “Flooding is a natural phenomenon caused by rain in our region,” Cook said. “The damage comes from outside your home, so the damage comes from outside your home. So the water enters your house from the outside or enters your house.”
If a pipe inside your home spontaneously bursts, or a pipe outside your home bursts and causes immediate damage, Cook says it should automatically be covered by your insurance.
Q: Should I have mortgage disability insurance?
A: Cook says you should have disability insurance. He says you’re more likely to be injured and disabled before the end of your working year than to die prematurely. “Is that supposed to be mortgage disability insurance? I don’t think we have time to go down that rabbit hole,” Cook said. “But I would tell people, talk to a disability insurance rep and really understand the disability insurance product.”