Kentucky
How is extreme weather impacting home insurance rates in Kentucky?
LEXINGTON, Ky. (WKYT)—Kentucky has had its share of bad weather over the last several years, which is partially why homeowners insurance rates have been on the rise.
“It first started with COVID, and you know, the cost of supplies and demand on labor rates and that sort of thing, and then right after COVID, we started seeing these really bad wind and hail storms coming through Kentucky,” said Renee Jackson, a Lexington insurance agency owner.
Due to both the pandemic and bad weather, there is a new normal when it comes to insurance rates.
“We used to look at rates for clients being a little abnormal if they were 10 percent or higher of the increase renewal. Now, we are looking at if it’s 18 to 20 percent is really when we start looking at shopping our client’s rates and that sort of thing,” said Jackson.
Jackson says one way to prevent major rate increases is to file claims only on significant damage.
“A windstorm came through, and I have to replace my roof. A roof replacement is $20,000. That’s when you want to file a claim. Keep the small things to yourself and let the insurance company deal with the large things because when you file the small things, you’re going to see even higher insurance increases on your premium and you don’t want that to happen,” Jackson said.
Jackson thinks that hiking insurance rates should cool, but the weather will play a big role in that fate.
“I think the insurance companies have a good handle of what’s going on. As long as we don’t have any more storms come through Kentucky in the next year, I think you’re going to see your rates leveling off. You’re not going to see the increases like you did before,” Jackson said.
According to a study from Deloitte, Kentucky is among 21 US states at high risk of climate impacts.
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