See how the industry and agents like you are addressing the rise in claims and costs – and how customers play a role.
Understanding trends impacting homeowners coverage
Historic inflation and worsening weather patterns have taken a toll across the insurance industry, leading to more frequent and more severe claims.
In response, insurance products like home coverage must evolve to keep insurance accessible to all. This environment represents opportunity for you to reinforce your value as an independent agent.
Despite these trends, our commitment remains with our customers and the success of your agency. We're here to help you anticipate, navigate and elevate as the industry evolves.
Together, let's educate customers on the environment and its impact on insurance so they can better understand the reasons for these changes.
Anticipate coverage updates
Cost-sharing is a critical part of product evolution.
Higher deductibles
in response to higher costs
Wind/hail deductibles
More common in specific states
Modifications to roof coverage
Focus on risk prevention
Navigate the new normal
- Why higher deductibles?
As claims cost and severity continues to rise, rates will have to rise to cover the gap. The quickest and most effective way to lessen the impact for customers is to raise their home deductible up from the customary $1K, starting at $2K and as high as $5K for more valuable homes.
And since many homeowners will not experience a substantial claim, this is largely an invisible cost. This is why higher and percentage-based deductibles are becoming more common, and why they can be promoted as a way to mitigate rate increases and keep coverage affordable.
- Understanding wind/hail deductibles
Wind and hail damage claims are the most frequent homeowner claim, and losses from these claims have increased nearly 12% over the last several years.
For customers unfamiliar with wind/hail deductibles, it can be described as a special deductible - that applies in place of the all-peril deductible - if the cause of a loss is wind or hail damage. This is commonly based on a percentage of the home's Coverage A value (1-2% in the case of The Hanover).
Example:
$350K Coverage A with a
$2,500 all-peril deductible
and 1% wind/hail deductibleTheft claim
$2,500 all-peril deductible applies
Hail damage
$3,500 - 1% of Coverage A -
wind/hail deductible applies- The importance of roof maintenance
As population growth continues in high-hail areas, opportunistic roofers have taken advantage of current low home deductibles, offering to cover that cost for impacted customers in exchange for their business. This has contributed to sending roofing claims soaring, and established a habit among customers to defer home maintenance until necessitated by a claim.
Older roofs are especially susceptible to damage from weather events. That's why it's important that customers maintain their roofs by:
- Trimming overhanging branches
- Performing regular maintenance, like replacing shingles
- Keeping gutters clear to mitigate ice dams that could result in roof (and other) damage
Let's elevate - by being there when it matters most
You can help customers understand these trends and their role in reducing their risk, keeping their homes safe, understanding their coverage and helping keep rates affordable.
This includes promoting increased risk mitigation efforts to protect roofs, avoid water damage and much more. Our research shows that responsible homeowners are willing to make the effort and investments necessary to help protect their homes - once they know the steps to take.
As the carrier most dedicated to your success, The Hanover is here to help you share this information and provide valued guidance, including education on:
- Keeping coverage up to date
- Promoting responsible property maintenance
- Helping homeowners make choices that will better protect their families from experiencing a loss
Agent talk track for customers
This document highlights the recent pressures driving claims frequency and costs, and provides helpful talking points as you have coverage update conversations for your customers.
Preventing common claims
These resources can help you consult your customers on ways to prioritize home maintenance and take steps to prevent common claims.
Proactive prevention of water damage
Additional resources
Weather resources
Hanover customers can turn to our weather resource center to learn how to prepare for weather events - and mitigate damage and claims.
All products are underwritten by The Hanover Insurance Company or one of its insurance company subsidiaries or affiliates (“The Hanover”). Coverage may not be available in all jurisdictions and is subject to the company underwriting guidelines and the issued policy. This material is provided for informational purposes only and does not provide any coverage.
Understanding trends impacting homeowners coverage
Historic inflation and worsening weather patterns have taken a toll across the insurance industry, leading to more frequent and more severe claims.
In response, insurance products like home coverage must evolve to keep insurance accessible to all. This environment represents opportunity for you to reinforce your value as an independent agent.
Despite these trends, our commitment remains with our customers and the success of your agency. We're here to help you anticipate, navigate and elevate as the industry evolves.
Together, let's educate customers on the environment and its impact on insurance so they can better understand the reasons for these changes.
Anticipate coverage updates
Cost-sharing is a critical part of product evolution.
Higher deductibles
in response to higher costs
Wind/hail deductibles
More common in specific states
Modifications to roof coverage
Focus on risk prevention
Navigate the new normal
- Why higher deductibles?
As claims cost and severity continues to rise, rates will have to rise to cover the gap. The quickest and most effective way to lessen the impact for customers is to raise their home deductible up from the customary $1K, starting at $2K and as high as $5K for more valuable homes.
And since many homeowners will not experience a substantial claim, this is largely an invisible cost. This is why higher and percentage-based deductibles are becoming more common, and why they can be promoted as a way to mitigate rate increases and keep coverage affordable.
- Understanding wind/hail deductibles
Wind and hail damage claims are the most frequent homeowner claim, and losses from these claims have increased nearly 12% over the last several years.
For customers unfamiliar with wind/hail deductibles, it can be described as a special deductible - that applies in place of the all-peril deductible - if the cause of a loss is wind or hail damage. This is commonly based on a percentage of the home's Coverage A value (1-2% in the case of The Hanover).
Example:
$350K Coverage A with a
$2,500 all-peril deductible
and 1% wind/hail deductibleTheft claim
$2,500 all-peril deductible applies
Hail damage
$3,500 - 1% of Coverage A -
wind/hail deductible applies- The importance of roof maintenance
As population growth continues in high-hail areas, opportunistic roofers have taken advantage of current low home deductibles, offering to cover that cost for impacted customers in exchange for their business. This has contributed to sending roofing claims soaring, and established a habit among customers to defer home maintenance until necessitated by a claim.
Older roofs are especially susceptible to damage from weather events. That's why it's important that customers maintain their roofs by:
- Trimming overhanging branches
- Performing regular maintenance, like replacing shingles
- Keeping gutters clear to mitigate ice dams that could result in roof (and other) damage
Let's elevate - by being there when it matters most
You can help customers understand these trends and their role in reducing their risk, keeping their homes safe, understanding their coverage and helping keep rates affordable.
This includes promoting increased risk mitigation efforts to protect roofs, avoid water damage and much more. Our research shows that responsible homeowners are willing to make the effort and investments necessary to help protect their homes - once they know the steps to take.
As the carrier most dedicated to your success, The Hanover is here to help you share this information and provide valued guidance, including education on:
- Keeping coverage up to date
- Promoting responsible property maintenance
- Helping homeowners make choices that will better protect their families from experiencing a loss
Agent talk track for customers
This document highlights the recent pressures driving claims frequency and costs, and provides helpful talking points as you have coverage update conversations for your customers.
Preventing common claims
These resources can help you consult your customers on ways to prioritize home maintenance and take steps to prevent common claims.
Proactive prevention of water damage
Additional resources
Weather resources
Hanover customers can turn to our weather resource center to learn how to prepare for weather events - and mitigate damage and claims.
All products are underwritten by The Hanover Insurance Company or one of its insurance company subsidiaries or affiliates (“The Hanover”). Coverage may not be available in all jurisdictions and is subject to the company underwriting guidelines and the issued policy. This material is provided for informational purposes only and does not provide any coverage.