29 Mar, 2024
1 min read

Chicago Homeowners Choosing Higher Insurance Deductibles

An increasing number of Chicago homeowners are dealing with soaring insurance costs by opting for policies with higher deductibles, according to Guaranteed Rate Insurance.

Homeowners are opting for lower monthly payments but increase the risk of high out-of-pocket costs when making insurance claims, Crain’s reported.

Chicago-based Guaranteed Rate Insurance analyzed 50,000 homeowners insurance policies. From 2019 to 2023, the average annual cost spiked by $615 to $1,723, with a 49 percent increase in policyholders opting for deductibles ranging from $5,000 to $10,000. That move allows for discounted premiums, potentially saving homeowners about $50 monthly.

Holding onto savings may be prudent for future catastrophic losses, but few policyholders are likely to follow that approach, said Jeff Wingate, executive vice president of Guaranteed Rate Insurance. Despite the majority maintaining deductibles between $1,000 and $2,500, their numbers dwindled by 17 percent over the four-year study period.

Escalating premiums poses a pressing concern for homeowners, especially amid high interest rates and inflated home prices. In 2019, the average homeowners insurance premium stood at $1,108, surging by 55 percent to $1,723 in 2023, with a 19 percent increase occurring in that single year alone, the outlet reported.

Illinois experienced a 25.8 percent premium hike last year, which was among the highest in the nation. Factors contributing to these steep increases extend beyond natural disasters to regulatory leniency and aging infrastructure.

While Illinois doesn’t get hurricanes and isn’t known for earthquakes, insurance rates have skyrocketed in part because Illinois is one of the most lenient states on insurance regulations, the outlet said. It doesn’t require insurance companies to get permission from the state to raise rates.

Besides that, the state does get its share of natural disasters, such as Feb. 27 when 11 tornadoes touched down near Chicago.

“Seventy percent of homeowners’ losses this year

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2 mins read

High Multifamily Insurance Rates Threaten Transactions, Strain Budgets

When Terri Clifton began shifting through insurance policy renewal offers for Better World Properties’ multifamily assets last month, she felt a moment of relief that this year’s double-digit increases came in much lower than last year’s 100% rate increase. That passed when brokers told her she should be pleased to see a mere 30% increase.

“Explain to me exactly what I’m supposed to be so happy about. The fact that you’re increasing it even more?” said Clifton, president of the Houston-based apartment management and ancillary services firm as well as a Houston Apartment Association advisory board member.

Insurance prices are growing faster for multifamily than any other commercial real estate asset class, with national operators reporting a 26% rise in insurance costs on average from 2022 to 2023 and some being hit with 300% and 400% increases.

The rise is most acute in catastrophe-prone regions, especially Texas, Florida and Louisiana. But multifamily owners and operators everywhere are feeling the pain of high rates, limitations in coverage, hikes on deductibles and a shrinking private insurance market.

That rapid rise is expected to continue into 2024, and operators told Bisnow that spiraling costs could kill deals, reduce returns on investments, force foreclosures and discourage investors from even entering the multifamily space.

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Houston flooding during Hurricane Harvey in August 2017.

“If we do have more natural disasters, if insurance companies take more losses this year and next year and prices continue to go up, it’s completely unsustainable, and no one is going to be able to make their properties work,” said Gautam Goyal, CEO of Houston-based private equity firm Three Pillars Capital. “You cannot increase rents by the same margin. There’s no way to keep up with those expenses.”

Goyal sees trouble ahead for the multifamily industry if there is not some form

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2 mins read

Top 10 broker tips for 2024



Top 10 broker tips for 2024 | Insurance Business Australia















You’re not a car salesman…

Top 10 broker tips for 2024

Insurance News

By Daniel Wood

Brokers face numerous industry challenges in 2024. Across many insurance lines premiums are still rising sharply, capacity is limited and coverage for major threats like flood and fire can be unavailable or unaffordable.

According to three industry leaders, demonstrating the broker difference, teamwork and savvy use of technology are three ways insurance brokers can stay ahead in 2024.

Demonstrate your worth

“Sometimes people put us with car salesmen and we’re not,” said Mandy Cooper (pictured above), director of CPR Insurance Services. “We’re actually there, not just when they are buying the cover, but also when there’s a claim which is really important for the clients.”

Brisbane-based Cooper said it’s important for brokers to explain and demonstrate their worth to clients.

“I think it’s important to show that you can support clients and also keep your name out there to help prove that broking is a good industry and that we are looking after people,” she said.

Surround yourself with good people

Tate Harris (pictured immediately below) was the winner of last year’s Young Gun of Year award for brokers at independent firms with less than 20 staff. The Canberra-based partner at allinsure credited working with an able and supportive team as an essential reason for his success.

“It’s teamwork, it’s not just me, it’s the people you have around you,” he told Insurance Business. “When the whole group comes together, that helps me do what I do and helps me really enjoy it.”

Leverage technology

Drew Schnehage (pictured below) is managing director of Innovation Group in Australia. Her firm specializes in third party claims administration and is also a big

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1 min read

Iowa Legal Aid receives $1.4 million to help derecho victims

Iowa Legal Aid will receive more than $1.4 million from the Legal Services Corporation to help provide legal services to low-income people who were impacted by the August 2020 derecho.

The nonprofit corporation, which pays for civil legal aid for low-income people, was also awarded an additional $34,577 to reimburse Iowa Legal Aid for services related to the derecho.

The Iowa organization is one of 19 across the country receiving grants for natural disasters that happened in 2020 and 2021, according to a news release from the Legal Services Corporation.

Congress included $40 million for the nonprofit in a $28.6 billion emergency supplemental appropriation attached to the September 2021 continuing resolution to fund the government in fiscal 2022.

Nick Smithberg, executive director of Iowa Legal Aid, said Thursday they are grateful for the additional funding.

The money, he said, will allow them to hire additional staff — paralegals and lawyers — in the Cedar Rapids regional office and in Des Moines. They will also use the funding to engage more legal volunteers and conduct community building and outreach with Iowa’s disaster response groups.

Lawyers aren’t the first thing people think about needing when a natural disaster strikes but disasters bring many legal challenges, Smithberg said.

Many times, people who have storm damage to their homes need help with a title so they can receive assistance from the Federal Emergency Management Agency. They may need help Replacing documents or with insurance claims and with contractor fraud or scams.

Smithberg said he didn’t have any statistics for the number of derecho cases Legal Aid has been handled, but hopes to do that once additional staff is hired.

The recovery process, he said, will continue for a long time. The last legal aid cases related to the 2008 historic flood weren’t closed until

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1 min read

Puerto Rico Legal Services receives $882k to help the victims of earthquake

On rico-january-7-2020?qt-news_science_products=1#qt-news_science_products”Jan. 7, 2020Puerto Rico witnessed a fatal 6.4 magnitude earthquake that claimed the lives of Puerto Ricans, and left many injured.

Another catastrophic earthquake occurred on the island on May 2, with a magnitude of 5.4, leaving Tallaboa, a suburb of Ponce, in shambles.

These earthquakes forced nearly 7,500 residents out of their homes and were placed in shelters and tents.

Two years later, the island is now receiving legal assistance in order to file for the Federal Emergency Management Agency (FEMA) so they can get back on their feet.

Legal Services Corporation, an initiative that was launched in 1974 for residents to receive civil legal aid stated that they will give $38 million in grants to 19 civil legal aid organizations in regions impacted by natural disasters, including hurricanes, floods, and earthquakes.

puerto-rico-legal-services-inc-program-profile”Puerto Rico Legal Servicesa branch within Legal Services Corporation, will receive $882,140 of the $38 million to give to low-income residents who live Southwest of the island.

“Low-income people who confront civil legal issues in the wake of natural disasters face an uphill battle, and they shouldn’t have to go it alone,” said LSC President Ronald S. Flagg. “We are grateful that Congress recognizes the need for legal assistance in these recovering communities and provides this funding that will help our neighbors repair and stay in their homes, obtain key identification documents, apply for benefits and so much more.”

Puerto Rico will use the grants to receive legal advice and representation in order to restore homes and other properties that were damaged by the natural disasters.

Other parts of America that are receiving assistance from this organization are Oregon, who’s been affected by wildfires; California, who has also received an abundance of wildfires; and Louisiana, a state

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1 min read

Legal Services Corp. awards funds to Iowa Legal Aid for 2020 derecho victims | Local News

WASHINGTON — Legal Services Corporation is awarding $1.4 million to Iowa Legal Aid to support the delivery of legal services to low-income people impacted by the August 2020 derecho.

LSC is also granting ILA an additional $34,577 to reimburse already incurred costs from providing services related to the 2020 derecho.

ILA is one of 19 organizations around the country receiving grants for natural disasters faced in 2020 and 2021. Congress included $40 million for LSC in a $28.6 billion emergency supplemental appropriation attached to the September 2021 Continuing Resolution to fund the government in FY 2022.

Survivors of natural disasters often require immediate legal assistance to file for Federal Emergency Management Agency assistance and insurance benefits and to deal with related evictions, unemployment and document replacement. Legal challenges can haunt survivors for years. Cases involving FEMA appeals, bankruptcy, public housing and domestic violence will arise, and disaster victims can be vulnerable to fraud or scams.

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“Low-income people who confront civil legal issues in the wake of natural disasters face an uphill battle, and they shouldn’t have to go it alone,” said LSC President Ronald S. Flagg. “We are grateful that Congress recognizes the need for legal assistance in these recovering communities and provided this funding that will help our neighbors repair and stay in their homes, obtain key identification documents, apply for benefits and so much more.”

ILA will use the funding to enhance its capacity to provide direct representation to derecho survivors, engage more pro bono volunteers and conduct community building and outreach with Iowa’s disaster response groups. The grant will fund additional staff, advertisements in rural areas, new equipment and a mobile intake unit. A holistic case manager will provide support to attorneys and paralegals while connecting clients to vital resources.

Members of

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1 min read

Legal Aid of NC gets more than $4 million to help natural disaster victims | Crime News

Special to The News Herald

WASHINGTON — The Legal Services Corporation recently announced it is awarding $4.35 million to Legal Aid of North Carolina to support the delivery of legal services to low-income people impacted by Hurricane Isaias, Tropical Storm Eta, Tropical Storm Fred and other severe weather events the state faced in 2020 and 2021.

LANC is one of 19 organizations around the country receiving grants for natural disasters faced in 2020 and 2021. Congress included $40 million for LSC in a $28.6 billion emergency supplemental appropriation attached to the September 2021 Continuing Resolution to fund the government in fiscal year 2022.

Survivors of natural disasters often require immediate legal assistance to file for Federal Emergency Management Agency assistance and insurance benefits and to deal with related evictions, unemployment and document replacement. Legal challenges can haunt survivors for years. Cases involving FEMA appeals, bankruptcy, public housing and domestic violence will arise, and disaster victims can be vulnerable to fraud or scams.

People are also reading…

“Low-income people who confront civil legal issues in the wake of natural disasters face an uphill battle, and they shouldn’t have to go it alone,” said LSC President Ronald S. Flagg. “We are grateful that Congress recognizes the need for legal assistance in these recovering communities and provided this funding that will help our neighbors repair and stay in their homes, obtain key identification documents, apply for benefits and so much more.”

LANC will use this grant to grow its disaster relief program, creating two teams to serve the eastern and western regions of North Carolina. Each team will include a supervising attorney, three staff attorneys and two paralegals. The grant will also fund four additional full-time positions that will contribute to the success of the disaster relief project.

A primary focus of LANC’s

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