Roberts Insurance Group Blog |
 When it comes to auto insurance in Georgia, everyone wants to make sure they're getting the best rate and not overpaying. With the rise in liability claims in Georgia over the last decade, that has become increasingly harder to accomplish. Lucky for you, we've outlined a few things you can do to make sure you're getting the very best rate on your auto insurance without sacrificing coverage: #1: Work With An Independent Agent
#2: Take Advantage Of The Multi-Policy Discount
#3: Telematics Discounts
#4: Pay In Full Discount
#5: Electronic Document Delivery Discount
These are just a few of the things you can do to save money on your auto insurance premium in Georgia. If you aren't currently working with an independent insurance agent that you like, we would love to earn your business at the Roberts Insurance Group! You can give us a call at 678-250-8133 or click below and we'll get to work on saving you money on your auto insurance today!
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 As a Georgia plumber, there is a lot to be worried about. Having the right Plumber Insurance plan in place is critical to making sure your business is properly covered and that your business won't be ruined financially from an accident. Getting the right coverage for Georgia plumbers is something we specialize in at The Roberts Insurance Group. The coverage packages that we put together will take care of your worries without breaking the bank. What Is A Good Coverage Plan For Georgia Plumbers? As a Georgia plumber, there are several different policies and coverage that your business needs to be properly covered: General Liability Insurance As a plumber or plumbing company, General Liability Insurance is meant to protect your business if an employee or subcontractor is liable for damage to someone else's property or if they cause bodily injury to someone else. Accidents happen and when they do, there can be some very large settlements involved, especially in Georgia. This is why it is important to have sufficient General Liability coverage as a part of your Plumbers Insurance plan. Workers Compensation Insurance Workers comp will pay for the medical bills and lost wages of your employees if they get injured on the job. If you don't have workers comp, your business is likely to go under with the amount of damages you'll be liable for. Commercial Auto Insurance Commercial Auto Insurance is another must-have for plumbers in Georgia. Vehicles used for business purposes would not be covered on a personal auto policy. Getting in an accident and having a claim denied would ruin your whole business with the amount of liability lawsuits and settlements that occur in Georgia. Property Insurance Coverage This coverage would cover your building and other property like computers and tools. Installation Floater Installation floater coverage is vital for plumbing businesses in Georgia. This coverage is designed to cover property that is being installed. Pollution Liability Insurance- Including Mold Coverage This is a commonly forgotten coverage for Plumbers in Georgia but we think it is very important. Pollution Liability will cover damage from mold or fungus if there is incorrect installations, improper sealing, wet materials, or other errors. Also, if you fail to properly locate underground utilities and cause a leak, pollution liability will pay for the damages. These examples are not covered under General Liability Insurance. Employment Practices Liability Insurance For any business that has employees, it is important to have Employment Practices Liability Insurance to cover your business if you're involved in a lawsuit by an employee or applicant due to unlawful employment practices. These claims are becoming very common in Georgia. Business Service Bonds Another coverage outside of the average Plumber Insurance package is Business Service Bonds or a Fidelity Bond. This is a form of insurance that covers policyholders for losses caused by dishonest acts of the businesses employees. These bonds are very inexpensive. If you're a plumber or plumbing company, give us a call at The Roberts Insurance Group at 678-250-8133. We specialize in working with Plumbers and contractors and have the knowledge, insight, and carrier access to ensure your Georgia Plumbing business stays safe and keeps your premiums as low as possible. The Roberts Insurance Group is a Georgia Insurance Broker specializing in commercial and personal insurance for our clients throughout the state of Georgia. We help our clients lower their cost of insurance with our superior claim and risk management expertise and our extensive carrier access. We are in the business of building relationships with our clients to help them grow and succeed. Contact us today to see what we can do for your family or business.  As with any contractor or business, electricians and electrical companies need a well-rounded risk management plan and insurance program. Something unique to electricians is the increased liability exposure they face long after they leave a job site. This is what makes insuring electricians a little unique compared to other contractors. Once an electrician leaves a job site, the work they've done will carry liability risk for decades to come. Why? Because if there is an issue with the electrical installation, it usually doesn't present a problem until down the road. When a claim does arise, it is typically much larger and causes much more damage than claims with other trades and contractors. House and building fires from electrical systems are much larger claims, both for property damage and bodily injury, than the claims we see with other artisan contractors like plumbers, painters, HVAC contractors, landscapers, and roofers. This is why it is so important to make sure your electrical company's risk management plan and insurance package is properly put together. What Makes Up A Good Insurance Package For Electricians? General Liability As with all businesses, electrical companies need general liability insurance to protect them from bodily injury and property damage claims that they may be liable for. General liability for electricians should also include completed operations coverage, so that the company is covered for any damages after the work is complete. Business Property and Inland Marine Electricians tend to carry a lot of tools and materials with them. It is vital that their tools are covered from losses anywhere their job might take them, which is why business property and inland marine coverage is necessary. Commercial Auto Not only is this coverage necessary to get on to a job site, it provides liability protection from any accidents while away from the job site as well. Electricians tend to be on the road a lot within a defined radius. With this exposure, it is necessary for electrical companies to have sufficient liability limits on their commercial auto policy. Workers Comp As any business with employees, you need to carry workers comp in case your employees get hurt while on the job. Whether it is in an auto accident, job site accident, or a slip and fall at the warehouse, your employees medical expenses and lost wages will be paid by an insurance company so that your business doesn't go under after an accident occurs. Contractors Errors And Omissions (E&O) For electrical companies that work on larger projects, it is crucial to carry errors and omissions coverage. Why? Because if there is a claim that arises from your work, the subsequent damage would be covered by the General Liability. HOWEVER, the cost to fix/replace your work would not be covered without an E&O policy. For companies that are working on larger jobs, not having this coverage could cost you tens of thousands of dollars down the road. What Makes Up A Good Risk Management Plan? The key factor and driving force to reducing your insurance premiums, keeping your costs as low as possible, and increasing profits is to minimize claims. Having an insurance policy or package isn't enough. If you have frequent or sever claims, the cost for your coverage will skyrocket and you'll end up paying 2-3 times more than your competitor. The way to avoid this is to have a good risk management plan in place: Safety Training Having a formalized training program is necessary to limiting claims for your electrical company. This helps ensure jobs are done properly, which limits the number of claims along with the severity. Return To Work Program Accidents do happen and employees get hurt- even if you take every precaution. When employees get hurt, it is important to have a return to work program in place with light duties. This will get injured employees off of workers compensation and back into the workforce. Minimizing the amount that your workers comp carrier pays out for claims is one of the best ways to keep your workers comp premiums down long-term. Driver Training Driver training programs help promote good driving habits for employees that are driving company vehicles, which will lead to safer driving and less accidents. Other things employers are doing to limit claims is providing rewards for good driving, like bonuses or punishments for accidents, like forcing the employee to pay the deductible from their paycheck. Another great way to promote good driving is with the use of technology. There are GPS and telematics programs available that give driving data back to the home office, which allows the company to monitor and critique their employees driving habits. Post Accident Reporting Much like having a return to work program, post-accident reporting is crucial to limiting the fall out from job site and auto accidents. The sooner the claim is reported, the sooner the insurance company can step in to settle the claim. The more time that goes by, the more likely it is for attorneys to get involved and increase the severity of a claim pay out. Job Site Inspections Having random job site inspections is another great way to ensure your company is being as careful as possible. These spot checks will keep employees on their toes and ensure they're acting in accordance of company policy and OSHA compliance. If you're an electrician or electrical company and your agent is not having these conversations with you, give us a call at The Roberts Insurance Group at 678-250-8133. We specialize in working for electricians and contractors and have the knowledge, insight, and carrier access to ensure your Georgia Electrical business stays safe and keeps your premiums as low as possible. The Roberts Insurance Group is a Georgia Insurance Broker specializing in commercial and personal insurance for our clients throughout the state of Georgia. We help our clients lower their cost of insurance with our superior claim and risk management expertise and our extensive carrier access. We are in the business of building relationships with our clients to help them grow and succeed. Contact us today to see what we can do for your family or business.  If you've had a commercial auto policy in Georgia for any length of time, you've probably felt the pain involved in paying for your commercial auto insurance. It probably feels like, year after year, your premiums keep rising and it keeps cutting into your profits. Something we do at the Roberts Insurance Group is work with our clients to develop actionable plans and strategies to lower their premiums and total cost of risk, which increases your business' profit. Before we go over the Top 6 Ways to Reduce Your Commercial Auto Insurance Premiums, I want to say that 1 thing YOU SHOULD NOT DO is decrease your liability insurance. If you have an agent or broker that has recommended that, then you should run the other way because that agent just wants to sell you a policy and they do not care about the financial well being of you or your company. The Top 6 Ways To Reduce Your Commercial Auto Premiums In Georgia Company Experience Just like with personal auto insurance, your company's commercial auto experience is a major factor in what you pay for your commercial auto insurance in Georgia. If your business has recent claims on the record, then you're going to be paying much more than a similar business that is claims free. In addition, companies with lapses in coverage are going to pay significantly more than businesses that do not lapse their insurance. Driver Experience Now, more than ever, it is vital to hire and retain employees with good driving records. This will help keep your commercial auto premiums in check now and in the long term. It is a good practice for your business to run Motor Vehicle Reports and Background checks on every new driver hired. In addition, depending on the industry, it is important to run periodic MVRs on drivers. Safety Training & Regular Vehicle Maintenance Safety training, like defensive driving courses, are critical to keeping your commercial auto insurance premiums low. Even though it may seem very straightforward, research shows that simple things like periodic safety training for drivers and regular maintenance for your vehicles will reduce claim frequency by over 30%. Reducing, minimizing, and eliminating claims is the #1 way reduce your commercial auto insurance premiums and increase your company's profits. Post Accident Training This goes hand-in-hand for reducing your workers compensation premium as well. All employees need to be training on what to do after an accident and your business needs to be quick in getting claims reported to the carrier. Accidents are a part of life, which is why they are called accidents and why insurance exists. However, minimizing the claim pay outs after an accident is a major factor in reducing your commercial auto (and workers compensation) premiums long-term. Pay In Full Many carriers will offer a discount for paying your premium in full for the year. With some carriers, it is minimal. With others, it is pretty significant. Ask your broker what discounts or premium reduction is available for paying the policy in full. Work With An Independent Agent Or Broker That Has Access To Several Markets When it comes to commercial auto insurance in Georgia, it's more important now than ever to have as many options as possible. If it has been years since your policies have been reviewing or re-marketed or if your agent or broker is only checking with a couple of carriers, chances are, you've been over paying for your insurance for quite some time. We do not recommend shopping your insurance at every renewal by any means. However, having your agent or broker check the market every few years is a good practice to implement to ensure you're not overpaying in the ever-changing commercial auto insurance market in Georgia. If your agent or broker has not discussed these things with you, give us a call at The Roberts Insurance Group at 678-250-8133. We're commercial auto specialists that would love the opportunity to help your business! The Roberts Insurance Group is a Georgia Insurance Broker specializing in commercial and personal insurance for our clients throughout the state of Georgia. We help our clients lower their cost of insurance with our superior claim and risk management expertise and our extensive carrier access. We are in the business of building relationships with our clients to help them grow and succeed. Contact us today to see what we can do for your family or business.  How Much Does Commercial Auto Insurance Cost In Georgia?
This is a tough question with a ton of different factors. In general though, it would be pretty common for a small business with small operations to pay about $1,000 per year for liability insurance on a commercial auto policy and closer to $2,000 per year for a vehicle that needed physical damage coverage like comprehensive and collision coverage. As discussed, there are so many different factors that play a role in what type of coverage your business needs and how much you will pay for the coverage. Below are some of the main factors that will impact your rates for commercial auto insurance: Driver Record and Claims History Similar to personal auto insurance, your company's claim history and the driving record for your employees will play a major role in what you end up paying for your commercial auto insurance. Company's with frequent and/or sever claims in the last few years will pay more than a similar company was 0 claims. Company's that employee drivers with moving violations will pay more than those that don't. Vehicle Type Vehicle type will play a major role in what your business pays for commercial auto insurance. It costs far less to insure a small sedan versus a semi-truck or tractor. Gross vehicle weight and the insurance company's claim history with certain vehicles are the driving forces behind the discrepancies. Company Operations and Industry Specifics How your company operates will be a major factor in how much you pay for commercial auto insurance in Georgia. For instance, a company that has a commercial vehicle to run occasional errands presents a smaller risk than one that has drivers going to 14 different job sites in a day. A company that makes several deliveries in one day presents a different risk than a company that makes infrequent deliveries or none at all. In addition, companies that use their vehicles to travel to, or haul, all across the country present more of a risk than a company that operates exclusively in a 25 mile radius. These are just a handful of the many things that go into rating your commercial auto policy in Georgia. It is important that you discuss everything with your agent, so that you can make sure your business is properly protected in the event of an accident. They are called accidents for a reason- no one plans on having them. The last thing you would want is for your business to go under due to a claim that isn't covered. If you haven't discussed these things with your agent, then give us a call right way! We would love the opportunity to provide value to your company and ensure that your business is properly protected. Call us at 678-250-8133 TODAY to see how we can help with your commercial auto policy! The Roberts Insurance Group is a Georgia Insurance Broker specializing in commercial and personal insurance for our clients throughout the state of Georgia. We help our clients lower their cost of insurance with our superior claim and risk management expertise and our extensive carrier access. We are in the business of building relationships with our clients to help them grow and succeed. Contact us today to see what we can do for your family or business.  When it comes to business insurance in Georgia, there's a few different ways you can buy insurance for your business:
1. You can buy online or direct through a carrier- DIY Insurance 2. You can buy through a captive agent 3. You can have your problem solved with an independent insurance agency Do-It-Yourself Business Insurance This is a really bad idea and the worst of your 3 options. This is when you try to buy insurance without the help of a licensed agent. It's like trying to diagnose yourself for a medical condition through WebMD. Why is it a bad idea? It is unlikely that you're aware of all of the different coverage options and how they may be able to apply to your business. In addition, you probably aren't aware with what coverage limits will be applicable to your business based on the operations. At the end of the day, if there is a claim that isn't covered and it could have or should have been, that's 100% on you and you'll be paying out of pocket. 99 out of 100 times, a licensed insurance agent is going to give you much better advice and insight into the available coverage options and help you find a plan that works best for you and your business. If they do make a mistake or give you bad advice, they're insured for that through their errors and omissions insurance policy. . Another major reason to avoid DIY business insurance is that you're probably going to end up paying way more than you have to for one of 2 reasons:
Buying Through A Captive Agency When you buy insurance through a captive agency (State Farm, Geico, Allstate, etc.) you're buying from a company that usually has just one option available for you. These agents are often very knowledgeable when it comes to the features of their products (because they only have one line of products to master) but you, as the business owner and consumer, are only getting that one option. This would be like going to dinner to a restaurant that only offered one appetizer, one entree, and one desert. With the limited options, there are many times that the captive agency may not be the best fit for a particular company both because of the price they charge and the coverage offered. We see policies from captive agencies every day that do not have vital coverage such as cyber, EPLI, professional liability, and more. Lastly, it is unlikely that one company would be the best fit for all of a businesses needs. Many businesses have complex needs that includes many different policies packaged together. If you have your liability, business property, commercial auto, and workers comp all with one company, chances are you're paying more than you need to and missing out on important coverages and features. You're losing money today and when there is a loss to the business. As businesses grow, evolve, and change, it is important to have options. Solving Your Problem With An Independent Insurance Agency The third way to buy business insurance is with the use of an independent insurance agency or broker. Independent insurance agencies, like The Roberts Insurance Group, tend to specialize more in commercial insurance and have access to hundreds of carriers and markets to best fit your business' needs and budget. An independent insurance agent will shop your coverage around to make sure your company is getting the very best price and coverage available, giving you the best overall value. This is exactly what we do for our clients at the Roberts Insurance Group. We make sure the businesses we insure have the coverage they need at the best possible price available. We're the business insurance specialists in Canton, GA and can help you navigate the market and workforce changes to guarantee you're getting the right coverage without being overcharged. Give us a call today at 678-250-8133 to see what we can do for your business! The Roberts Insurance Group is a Georgia Insurance Broker specializing in commercial and personal insurance for our clients throughout the state of Georgia. We help our clients lower their cost of insurance with our superior claim and risk management expertise and our extensive carrier access. We are in the business of building relationships with our clients to help them grow and succeed. Contact us today to see what we can do for your family or business.  If your business has had workers compensation insurance in the past, you're probably familiar with the end-of-term audit that comes with it. For those Georgia business owners who aren't familiar, workers compensation premiums have a required audit attached to it.
Workers Comp Premium Audit Explained: Essentially, when you start a workers comp policy, the premium is estimated based off of your company's estimated premiums and associated job roles. More or less, what you tell your agent or broker. At the end of the policy period, the insurance company will audit your payroll to ensure that you were charged the appropriate premium. If you overstated your payroll before the policy period, the insurance company will refund you the over payment. If you understated your payroll, you will get hit with an additional premium invoice for the underpayment. So How Can Pay As You Go Workers Comp Billing Help? The number one reason to take advantage of the Pay As Yo Go option is to avoid getting hit with a large additional premium bill. We see this all of the time with new businesses and contractors who underestimate their payroll or use of subcontractors at the beginning of a term. The increase in premium is usually hefty- often several thousand dollars depending on your business. With the Pay As You Go option, this is totally avoided because you report your payroll and your premium is adjusted in real time. Whether you pay your employees monthly, bi-weekly, or monthly, the Pay As You Go workers comp billing structure will accommodate changes to your payroll and you'll avoid getting hit with a big bill. As I was writing this, I received an email from a client that we switched to Pay As You Go mid-term. She said, "I'm SO glad we made this change because I owed a good bit in back pay for workers comp so I certainly would've received another large bill if we kept going as we were". What Carriers Offer This Option? Pay As You Go is still a new concept in the workers compensation world. However, most of the larger workers comp insurers have adopted this as an option. If you're interested in taking advantage of this for your business, you need to communicate this to your broker and have them place you with a company that offers it. If you don't have access to a carrier that offers this, then contact us today at 678-250-8133 and we'll get you and your business taken care of! The Roberts Insurance Group is a Georgia Insurance Broker specializing in commercial and personal insurance for our clients throughout the state of Georgia. We help our clients lower their cost of insurance with our superior claim and risk management expertise and our extensive carrier access. We are in the business of building relationships with our clients to help them grow and succeed. Contact us today to see what we can do for your family or business. The U.S.commercial automobile insurance segment’s underwriting losses deepened to $4.0 billion in 2019, the segment’s worst loss in 10 years and a continuation of a decade-long trend of worsening underwriting results, according to a new AM Best report.
Indeed, the U.S. commercial automobile insurance line of business has not generated a combined ratio under 100 since 2010, said the report, titled, “U.S. Commercial Auto Writers: Profitability Remains Elusive.” (Combined ratios above 100% indicate an underwriting loss). The segment’s combined ratio deteriorated by 1.4 percentage points in 2019 to 109.4, driven by a nearly 2.0 percentage-point increase in incurred losses and loss adjustment expense (LAE) ratio, the report continued. AM Best confirmed that calendar year 2019 marked the eighth consecutive year in which the commercial auto line’s combined ratio was materially higher than that of either the commercial lines or the P/C industry in its entirety. Despite double-digit, year-over-year increases in earned premiums, the growth in incurred losses and LAE has outpaced earned premium growth, the report said, noting that LAE continues to grow as claims are going through costlier litigation from social inflation and instances of litigation financing. However, the COVID-19 pandemic may give commercial automobile writers some breathing space from the segment’s high frequency and severity levels, the report said. “Reduced road traffic from shelter-in-place requirements has resulted in fewer automobile accidents; however, although accident frequency may decline, severity potentially could rise because of vehicles colliding at higher speeds,” it added. While ride-share claims may decline, claims from meal or grocery delivery services could increase as a result of the lockdown, AM Best added. The report said that auto insurers have made concerted efforts improve price adequacy, pushing for rate increases for the past several years. “Increasingly aggressive rate actions continued through 2019, with the first double-digit increase in premiums of 10.5% across all accounts in the fourth quarter.” For the line to return to underwriting profits, AM Best said, “companies will need to do a better job with their initial assessments of costs per claim, given that automobile repair costs continue to rise, as well as severity, owing to more frequent attorney involvement in claims.” Insurers also must embrace technologies like telematics and enhance their rate, underwriting and claims-settling practices, said the ratings agency. (Editor’s note: telematics help improve driver safety). As a result of these trends, AM Best maintains a negative market segment outlook on the commercial automobile insurance segment. Source: AM Best https://www.insurancejournal.com/news/national/2020/06/30/573912.htm  A frequent question we get from Georgia homeowners is: What deductible do you recommend? The answer to this question isn't going to be the same for every Georgia homeowner or every home insurance policy. However, becoming educated on the different types of deductibles and their effect on your home insurance will help you make the best decision for you and your family. What Type of Deductibles Are Available? For home insurance in Georgia, there are typically 2 types of deductibles to choose from: a percentage-based deductible or a flat deductible. A percentage-based deductible is calculated by a specific percentage of your dwelling coverage. You can typically choose 1/2%, 1%, 2%.. all the way up to 5%. This means that if your home's dwelling coverage is $500,000 and you have a 1% deductible, your current deductible is $5,000. The main advantage to carrying a percentage-based deductible is a discounted premium. Since your share of the insurance will never change, the insurance company will typically give you a cheaper premium. In the $500,000 to 1% deductible example above, this would be less expensive than carrying a flat $5,000 deductible. Why? Because over time, the coverages on your policy will increase to keep up with inflation. For instance, a home covered for $500,000 today may be covered for $600,000 10 years down the road. Someone with a flat deductible will still only be responsible for $5,000 while someone with a percentage-based deductible would be responsible for the first $6,000 in damages. The main disadvantage of carrying a percentage-based deductible is that your deductible will increase over time and it can lead to major surprises when it comes time to file a claim. I have seen in the past where someone files a claim thinking they have a $2,500 deductible and it ends up being closer to $4,000, which severely impacts what the insured receives as a pay out on their policy. This is the main reason that we tend to steer away from these deductibles. The savings on premium is typically very minimal and not worth it in the long run. The main advantage of carrying a flat deductible is that you will always have the same share of insurance, unless you decide to make changes down the road. If you have a $1,000 deductible today, you'll still have that in 10 years. This makes understanding your policy so much easier in my opinion and leads to much happier clients when it is time to file a claim. General/All Peril Deductible vs Wind/Hail Deductible Another thing to be aware of when it comes to choosing your deductible for your home insurance policy in Georgia is that many companies have 2 separate deductibles. One that applies for weather damage (Wind/Hail) and another that applies to all other causes of loss (All Peril or General). Due to the surge in roof claims in Georgia over the past 10 years, we're starting to see many policies in the marketplace that are written with significantly higher wind/hail deductibles. This is typically done as a cost-saving mechanism for most Georgia homeowners, although some homeowners near the coast will be forced to take a higher deductible for wind/hail due to the high winds in their area. Unless your carrier requires you to carry a larger deductible for wind/hail due to your location, we always recommend keeping it the same as your all peril/general deductible. The savings on your premium is typically very minimal and not worth it, in my opinion. Also, the easier your policy is to understand, the less surprises you'll have when it comes time to file a claim. So What Deductible Is Right For You? Now that we've cleared the air and made the case for carrying a flat deductible for all losses, it's time to figure out what deductible you should carry. $1,000? $2,000? $5,000? The truth is, it is all going to come down to personal preference and your household's finances. For example, if you do not have $5,000 in your emergency fund, carrying a $5,000 deductible would not make sense. Typically, homeowners in Georgia with a $150,000 to $500,000 replacement cost will carry $1,000 to $2,500 for their deductible. Homes $500,000 to $1,000,000 are somewhere in the $1,500 to $5,000 range and homes $1,000,000 and above will be $2,500 to $5,000. Again, it is always going to come down to each individual household's preference and finances. We recommend having your agent or broker gives you pricing at different deductible levels so that you can do a proper cost-benefit analysis to see what option makes the most sense for you and your family. The Roberts Insurance Group is a Georgia Insurance Broker specializing in commercial and personal insurance for our clients throughout the state of Georgia. We help our clients lower their cost of insurance with our superior claim and risk management expertise and our extensive carrier access. We are in the business of building relationships with our clients to help them grow and succeed. Contact us today to see what we can do for your family or business. What Does the Recent Increase in Construction Costs Mean for Your Home Insurance in Georgia?5/6/2021  By now, you're probably aware that there has been a major increase in the cost of new construction homes across the country. The prices of lumber and other common construction materials have been sky rocketting over the last several months due to a decrease in supply and an increase in demand. In addition, labor shortages have drastically increased the cost of labor.
The recent increases in construction costs have many Georgia homeowners wondering, what does this mean for my home insurance? Is my home adequately covered? Will my rates go up? We're going to answer that for you: What Does This Mean For Your Georgia Home Insurance? An increase in the cost of construction DOES impact your home insurance in Georgia. The home that cost $400,000 to build or rebuild a year or 2 ago can now cost upward of $500,000. This means that insurance companies everywhere are having to make adjustments to their replacement cost estimating software to account for the changes in construction costs. Whether you're getting a new home insurance policy or your renewing your existing one, you should expect an increase in the dwelling coverage or replacement cost estimate. Is Your Home Adequately Covered? It is hard to say without reviewing your policy but, in general, your home insurance should still have adequate coverage to rebuild your home in the event of a total loss even if you haven't purchased a new policy recently or renewed your existing one recently. This is because almost all home insurance policies in Georgia come with additional replacement cost/extended replacement cost coverage that adds an additional 25 to 100% of dwelling coverage on top of the underlying replacement cost estimate. All of the homes we insure come with this coverage but I can not speak on behalf of all agents or carriers. I would recommend reviewing the replacement cost estimate and the policy coverage with your agent as soon as possible, just to be safe. Will Your Rates Go Up? Yes and no. Any time there's an increase in coverage, there's potential for an increase in the premium you pay. In general, insurance companies have to charge more for $500,000 of coverage versus $400,000. However, there is not necessarily an increase in the potential or likelihood of a claim. If you do get a significant rate increase, it would be wise to have your agent or broker try to re-market your policy to see if there is something more affordable. The Roberts Insurance Group is a Georgia Insurance Broker specializing in commercial and personal insurance for our clients throughout the state of Georgia. We help our clients lower their cost of insurance with our superior claim and risk management expertise and our extensive carrier access. We are in the business of building relationships with our clients to help them grow and succeed. Contact us today to see what we can do for your family or business. |
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