Outlook Q3 - Private Client

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Personal Lines Rates Threaten Resiliency

Explore HUB’s detailed rate forecast.

Private Client

Outlook Q3 Rate Report

Insurance rates remain elevated in most lines, but savvy homeowners who properly manage their risk will reap premium rewards.

Setting the Scene

more for property insurance in the U.S.

10% - 20%

As extreme weather events of 2022 continue to reverberate, homeowners can expect to pay 10% to 20% more for property insurance in the U.S., and 5% to 10% more in Canada. With the types, geography and severity of disasters increasing, many homeowners are considering catastrophe peril coverage as an add-on to help cushion the blow if a weather event damages their property. However, rates for these policies are also rising. Auto insurance remains challenging, and policyholders can expect to see those rates rise 5% to 10% at renewal. Although supply-chain bottlenecks felt during the pandemic have eased, increased repair costs, elevated accident severity and high claims volume due to storm-related damage have driven up premiums. These auto claims are also affecting personal umbrella coverage. Higher litigation expenses and settlements from auto accidents have resulted in elevated personal excess liability premiums in both the U.S. and Canada. There is a silver lining in this storm: There will be rate relief for homeowners looking to purchase coverage for specialty transport such as motorcycles, recreational vehicles and watercraft.

The sky-high demand for specialty vehicles and watercraft seen during the COVID-19 pandemic has declined, moderating insurance prices. Rates in this line will rise slightly but are expected to remain stable for at least the next year.

Creating an effective risk management strategy requires an understanding of fluctuations in the insurance market. HUB’s Third-Quarter Rate Report provides detailed rate forecasts based on proprietary insurance premium data to help guide you through your 2024 insurance renewals.

From high winds to headwinds, significant losses trigger rising rates

Start renewals early.

For a traditional renewal, plan to start the process 120 to 150 days out. Be sure to provide your broker with detailed information on any upgrades to property, recent acquisitions of property, vehicles, watercraft and valuables, or changes in your lifestyle, business or philanthropic activities. Arming your broker with this information will ensure your policies have adequate limits and prevent gaps in coverage.

Assess your property exposure.

Be familiar with your regional risks.

Retain top contractors for modifications.

Be familiar with your regional risks.

Retain top contractors for modifications

Start renewals early.

Consider ways to improve the resiliency of your properties. A short-term investment can have a long-term positive impact on both property value and insurance premiums. Damage mitigation measures may include backup batteries to sump pumps, central station burglar and fire alarms, temperature and gas leak sensors and security cameras with motion-detection floodlights.

Assess your property exposure.

With weather-related events increasing in frequency and severity, homeowners need to evaluate their exposures. Properties in locations susceptible to wind damage should have double-strapped roof systems and impact-resistant windows. Those in wildfire-prone areas need a brush removal strategy and fire-resistant landscaping. And even if your properties are not located in flood zones, consider adding coverage to protect against such hazards as groundwater intrusion from summer storms.

Be familiar with your regional risks.

Start renewals early.

Assess your property exposure.

Retain top contractors for modifications.

Check references and insurance for all contractors hired to make property modifications to reduce exposures. It’s essential to employ knowledgeable contractors who understand what you’re trying to accomplish and how to get the job done.

Retain top contractors for modifications.

Assess your property’s exposures.

Be familiar with your regional risks.

Review the value of your property against your policy.

Manage your risk to improve attractiveness to insurers

The insurance marketplace is improving, but homeowners may still see elevated rates in many lines of insurance at renewal. To reduce your total cost of risk, take the time now to implement these best practices:

Protect income-producing personal assets.

Don’t forget about cyber.

Work in partnership with your broker.

Be sure to notify your advisor if you ever rent out your vacation home, or perhaps have a son or daughter who uses a family car to earn some money as a ride share driver. Traditional homeowners and auto policies generally exclude coverage for bodily injury or property damage that occurs when a property or vehicle is being used for a business activity. Explore commercial policies for such investment properties or shared vehicles, and make sure exposures for properties held in trust by family members who use these online services are re-evaluated.

Protect income-producing personal assets.

Start renewals early.

Assess your property exposure.

Be familiar with your regional risks.

Cyber insurance is becoming increasingly more affordable, but don’t become complacent about cybersecurity. Ensure you have a comprehensive plan to protect your assets, your privacy and your reputation.

Don’t forget about cyber.

Start renewals early.

Assess your property exposure.

Be familiar with your regional risks.

Always consult your insurance broker. It’s essential to understand the risks involved and to leverage risk advisors’ experience. Your broker can show how to make your property more attractive to insurers and find insurers that can provide coverage with the best possible terms and price.

Work in partnership with your broker.

Start renewals early.

Assess your property exposure.

Be familiar with your regional risks.

Protect income-producing personal assets.

Don’t forget about cyber.

Work in partnership with your broker.

Protect income-producing personal assets.

Don’t forget about cyber.

Work in partnership with your broker.

Add flood insurance to your coverage mix.

Consider nontraditional insurance strategies.

Work in partnership with your broker.

Retain top contractors for modifications.

Don’t forget about cyber.

Work in partnership with your broker.

Retain top contractors for modifications.

Protect income-producing personal assets.

Work in partnership with your broker.

Retain top contractors for modifications.

Protect income-producing personal assets.

Don’t forget about cyber.

Private Client Insurance

When you partner with HUB, you're at the center of a vast network of experts who will help you reach your goals. Download our Rate Report to learn how you may be affected by today's insurance rates and how it may impact your total cost of risk.

Download Report

more for property insurance in the U.S.

10%-20%

Several years of catastrophe losses, rising inflation and economic uncertainty converged to create one of the hardest insurance markets faced by homeowners in decades. While insurance rates rose in virtually all lines of coverage, substantial catastrophe losses in 2022 will have a significant effect on U.S. and Canada property rates. Property owners will pay more for insurance coverage in 2023 as the industry recalibrates and rebounds from losses from hurricanes, floods, tornadoes and wildfires. But stabilizing inflation and improved underwriting should help the property market settle into a less erratic future.

Swiss Re Institute, “A perfect storm,“ March 22, 2023.

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Private Client

Business

Keep pace with the latest trends

Stay In the Know

Sitemap

Terms & Conditions

Privacy Statement

Outlook Home

Business

Private Client

Go to HUB site

Head to hubinternational.com to learn more about us.

As extreme weather events of 2022 continue to reverberate, homeowners can expect to pay