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Member, Beacon International Group, Ltd.
The impact of Superstorm Sandy is already being felt in the personal lines sector, according a report released Wednesday by Dallas-based electronic insurance exchange MarketScout.
According to MarketScout, personal lines rates rose an average of 4% in November over those of the same month a year earlier. While rates for personal auto and personal articles rose 3%, rates for placements under $1 million for homeowners coverage rose 4% while that for placements for more than $1 million rose 5%.
MarketScout CEO Richard Kerr called the increase for high-end homeowners coverage a “dramatic move.”
“Rates moved up from plus 2% in October to plus 5% in November,” said Mr. Kerr in a statement. “This is the largest month on month rate increase we’ve seen in the 11 years we have been tracking rates in the U.S. It appears insurers of high-value homes are adjusting rates upward to account for increased exposure to weather-related events. And some of the accounts are now being forced into the non-admitted market where rates are higher and coverages frequently restricted.”