Like many of you, I did a double take when I saw the tornado warning come through in Western Washington. Tornadoes? Here?? We’re used to rain, windstorms, and the occasional tree crashing into a power line, but funnel clouds? That’s a new one for most of us.

Naturally, a few clients reached out and asked, “Is that even covered?” Great question, and I’m here to clear that up.

Yes, Tornadoes Are a Covered Form of Loss in Washington

Even though tornadoes are rare in the Pacific Northwest, most standard homeowners insurance policies include windstorms as a covered peril. And yes, tornadoes fall under the windstorm category. That means if your home is damaged by a tornado—roof ripped off, windows shattered, siding peeled away—your policy likely has you covered.

Here’s what that means in practical terms:

Your deductible applies. If you have a $2,500 deductible, that’s what you’d be responsible for before the insurance kicks in.

Detached structures like garages and sheds are usually covered too, but check your limits.

Personal belongings damaged by the tornado would be covered under your contents coverage.

Loss of use coverage may help with hotel costs or temporary housing if your home becomes uninhabitable.

So, Why Are We Even Getting Tornado Warnings?

Honestly? Weather’s getting weird. Climate instability means we’re seeing all kinds of “rare” weather events cropping up in places they haven’t historically. It’s unsettling, but it’s also a reminder of why we carry insurance in the first place. Not for the everyday stuff. For the “I never thought this would happen” days.

If You’re Reading This During a Warning

Get to a basement or interior room without windows. Bathrooms, closets, and hallways work well. Stay away from glass. Bring your phone and flashlight. And please, don’t go outside to see it. I promise, it’s not worth it.

The Short Version: Tornado = Covered

The sky might be doing something strange today, but take a deep breath. Your homeowners policy has you covered for tornadoes, even if we’ve hardly ever had to think about that before. If you have questions or want to double-check your specific coverage, just reach out. That’s what I’m here for.

And hey, let’s hope this whole thing blows over quickly. (Pun very much intended.)

Stay safe out there,
Elisha

Ever wonder why your insurance company asks about everyone in your household when setting up your auto policy? It’s not just to be thorough—it’s to make sure you’re properly protected.

It’s All About Risk

Insurance is about managing risk. When you get a policy, the company assesses how likely you are to have an accident, and that includes anyone in your household who might drive your car. Even if your spouse only drives occasionally or your teen just got their permit, they could be behind the wheel at some point, which means they need to be accounted for.

Properly Rating for Risk Keeps Rates Lower

When insurance companies know about all the drivers in your household, they can better calculate the true risk of covering you. This means setting accurate premiums based on your specific situation. It’s not just about charging more—it helps keep rates fair for everyone. If some drivers aren’t disclosed, insurers may end up paying out for accidents they didn’t expect, which could drive rates up across the board. By being upfront, you’re contributing to a fairer system that helps keep premiums stable for everyone.

Avoiding Coverage Gaps

Listing everyone helps prevent surprises if a claim comes up. Let’s say your teenage driver, who wasn’t on your policy, takes the car and has an accident. That could lead to denied claims or messy situations. By listing all drivers or excluding those who won’t drive, you ensure that your coverage matches your household’s needs—no unexpected gaps.

Honesty Is the Best Policy

Not listing drivers might seem like a way to keep premiums low, but it can backfire. If your insurance company finds out later, they might cancel your policy or refuse to pay for a claim. It’s always better to be upfront so your coverage is based on accurate information.

Exclusions: A Way to Customize

In some cases, it makes sense to exclude someone, like an elderly parent who no longer drives or a roommate with their own car. Just remember, if they’re excluded and end up driving your car, the policy won’t cover an accident. It’s a way to keep things flexible but requires a bit of care.

Bottom Line

Insurance companies ask about household drivers to ensure you’re covered properly and to keep premiums fair for everyone. It’s about protecting you, not just checking boxes. If you ever have questions about who should be listed or excluded on your policy, reach out. I’m here to help you make sure you have the right coverage in place—so you can drive with peace of mind.

Opting for a Higher Home Deductible in a Hard Insurance Market

With premiums on the rise and underwriting criteria becoming more stringent, thoughtful policy adjustments can help you navigate these choppy waters more effectively. One strategy that stands out for its practicality and foresight is opting for a higher deductible on your home insurance policy. While seemingly counterintuitive, this move holds substantial benefits for homeowners willing to adopt a slightly more self-reliant approach to minor damages. Let’s explore why this could be a smart move in a challenging insurance environment.

The Basics of Deductibles

Simply put, a deductible is the amount you’re responsible for paying before your insurance coverage kicks in for a claim. While a lower deductible might seem attractive for its immediate benefits, a higher deductible can be a strategic choice in a hard market for a couple of key reasons.

Premium Savings

A higher deductible directly translates to lower premium costs. Insurance companies favor policyholders who are willing to absorb a larger share of risk. This arrangement makes you a less frequent claimant in their eyes, which is often rewarded with more favorable premium rates.

Encouraging Prudent Claim Filing

While it is always wise to consider the benefits and risks of filing small claims, this is crucial in a hard market, particularly for damages under $5,000. Such claims can lead to higher premiums for up to five years, a duration during which the cumulative cost will likely surpass the immediate benefits of the claim. In plain English, if you file a claim under $5,000 – you’re likely to pay more than that in increased homeowners cost over the five years the claim follows you.

Conclusion

In the face of a hard insurance market, adjusting your deductible upwards is a strategic decision that balances immediate out-of-pocket expenses with long-term financial benefits. It not only results in premium savings but also aligns with a prudent approach to insurance usage. By treating insurance as a safety net for significant risks rather than minor inconveniences, you place yourself in a position of strength, ready to face the challenges of a hard market with confidence and foresight.

 

Navigating the Tightening Insurance Market: Insights and Tips for 2024

The landscape of the insurance industry is undergoing significant changes, and it’s happening with a velocity that we haven’t seen in recent years. This shift is most pronounced in the auto and home insurance sectors, where carriers are implementing drastic measures in response to an increasingly turbulent market environment. This article aims to shed light on these industry-wide changes, outline the main factors driving this trend, and provide practical advice on how you can navigate this hard insurance market.

The Current State of the Insurance Market

Across the country, insurance carriers are hitting the brakes on issuing new policies. Major companies have openly declared a pause on welcoming new customers, while others are merging or being acquired, signaling a market-wide strain. The root of this upheaval? A simple yet formidable foe: inflation. Operating within this inflationary landscape has proven challenging for carriers, as the costs associated with claims have surged dramatically over the past two years. Consequently, this has led to increased premiums and selective policy writing, affecting policyholders nationwide irrespective of individual circumstances.

Key Factors Influencing the Market

Several pivotal factors are at play in the current insurance market dynamics:

• Rising Reconstruction Costs: The costs to rebuild homes have soared due to increased prices for materials and labor, compounded by ongoing supply chain issues.
• Auto Repair Expenses: Enhanced technology in vehicles has escalated repair costs significantly. For instance, what once was a $500 side mirror replacement can now cost upwards of $1,500.
• Medical Care Costs: The expenses related to medical care, especially for bodily injuries in auto accidents, have skyrocketed.
• Litigation and Settlements: Legal costs and settlement amounts are increasing at unprecedented rates.
• Accidents Frequency and Severity: There’s been a noticeable uptick in both the frequency and severity of auto accidents and fatalities post-COVID.
• Reinsurance Capacity: The insurance that carriers purchase to mitigate catastrophic losses is nearing its capacity, with unsustainable rate increases predicted through at least 2024.

Strategies for Policyholders

Despite these challenges, there are several strategies you can employ to help mitigate the impact of these market conditions:

1. Opt for Higher Deductibles: This can help lower your policy premiums.
2. Participate in Safe Driving Telematics Programs: These programs offer discounts for demonstrable good driving.
3. Regularly Review Discounts: Ensure you’re receiving all applicable discounts on your policy.
4. Bundle Policies: Combining auto and home policies can lead to significant savings and more stable pricing.
5. Maintain Tenure with Carriers: Frequent switching can be detrimental in the long run; loyalty is often rewarded.
6. Obey Traffic Laws: Tickets can increase your rates substantially.
7. Consider Self-Insuring for Minor Claims: Frequent small claims can increase your rates; discuss with your agent before filing.
8. Consult an Independent Insurance Broker: They can offer a variety of options and guidance through this complex market without compromising on coverage.

Remember, Your Agent is Here to Help

It’s crucial to understand that insurance agents operate within the constraints set by carriers. We don’t control rates or policy decisions but are here to ensure you have the best possible insurance for your needs. We’re committed to educating our clients, managing accounts, and providing claims counseling when necessary.

During these turbulent times, compassion and understanding are more important than ever. Your insurance agent is navigating the same market changes and is dedicated to assisting you through this period. Let’s work together to adapt to the evolving insurance landscape with knowledge, strategy, and cooperation.

We are thrilled to announce that our very own Elisha Cavanaugh has achieved a remarkable milestone by winning The Outstanding Female Agency Principal award in the 2023 Agent for the Future Awards, presented by Safeco Insurance! Elisha expresses her gratitude and humility in standing among such talented individuals and innovative agencies that are shaping the independent agency system.

For more details about the 2023 Agent for the Future Award Winners, you can visit this link.

Congratulations, Elisha, on this well-deserved recognition

 

Watch this quick video that helps break down what’s happening now in the insurance industry. As always, we’re here to help walk you through what options might be available to you.