What The Hail?!
It was a year we all will remember, and one I am sure we all want to forget — 2020. But the reasoning is more than just because of the pandemic and political unrest. There were environmental issues, too.
Did you know that in 2020 there were 22 weather/climate disaster events with losses exceeding $1 billion each in the United States? It’s true! In fact, according to the National Centers for Environmental Information “these events included 1 drought event, 13 severe storm events, 7 tropical cyclone events, and 1 wildlife fire.” On top of that, 264 lives were lost in these disasters.
A Deeper Dive into the Numbers
So, that got me thinking. Was 2020 unique or are these events more common than we think? Here’s what I found.
From 1980-2020, the average number of events has been seven compared to the 22 we saw in 2020. So, yeah, 2020 was relatively unique.
So, What Do These Weather-Related Statistics Mean for You?
Below is data from the National Center for Environmental Information, and the trends are startling. While 2020 has not been the best, let’s face it, the last five years are running hot!
The property casualty insurance market has hardened. At renewal, you may see the following:
- Property rate increases
- Increased deductibles
- Wind/Hail deductibles added
- Carriers leveraging other lines of coverage with the property
What Steps Should You Take to Avoid Big Losses?
When taking a look at your coverages, you may want to also:
- Talk to your broker early and get indications on what the incumbent market is thinking
- Discuss if this is the year to market your program
- Consider raising your deductible to help reduce premiums
- Update your broker on any improvement you made to your buildings that would protect your assets (installation of alarms, sprinkler systems, video surveillance, temperature/moisture monitoring, )
We’re happy to talk with you about your renewal, market conditions, and what you should be looking out for. Feel free to reach out to us!
For more information,
contact Gerald Johnson