Early estimates indicated only 15% of Hilton Head properties had some damage from the storm.Some observations of the post-Matthew insurance markets: Though still very low, interest rates are starting to rise which helps the investment results of the insurance companies. Interest rates are also becoming a positive factor. The insurance market had softened post-Katrina as catastrophic losses moderated. While Hurricane Matthew caused significant damage in the Hilton Head area, the industry had few losses elsewhere which helps their overall pricing. Basically it was a seller’s market where finding coverage at affordable prices was difficult for the buyers as choice was limited. Those losses combined with an incredibly low interest rate environment led to what we call a “hard” insurance market. The impact on the whole insurance market was significant as insurance companies sought to recoup the losses across all insurance buyers. For example in 2005, when Hurricane Katrina hit New Orleans, Hurricanes Dennis, Rita and Wilma also hit the U.S. There are several factors that go into insurance pricing beyond losses in the local market. How will the storm affect my home insurance? Even for those homeowners with losses, catastrophic weather claims do not count against you when shopping for new insurance. The good news is the insurance market is still very healthy with only modest changes to underwriting standards. Perhaps you are asking, is now a good time to get insurance on a Hilton Head real estate investment?
It would be natural to worry about the state of the insurance market after a big storm. COURTESY OF | Scott Vincini, CLU, CHFC– Callen Insurance Services
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