Mathes Insurance Group
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Each month I will address a new topic that I have read, heard about, or learned of myself from my experience. Some articles will be from insurance acquaintances; field representatives, insurance company personnel, and others related to the insurance industry. The articles may be recycled depending on their importance.

I hope that you find this page informative. I welcome comments and discussion from people with a genuine interest.

Cost of Home
Insurance Rising
From Des Moines, IA Paper July 2001

Des Moines (AP) - The cost of insuring a home is climbing sharply with rates rising at least 10 percent in many parts of the country.

Industry officials say the increased costs of building supplies and a run of unusually bad weather across the country are contributing to the rise in insurance costs.

Allstate, the second-largest provider of homeowner's insurance, is leading the way, with increases from 10 to 25 percent in several states.

The company is raising rates by as much as 17 percent in Iowa. Increases in other states are tagging behind, but still substantial.

Allstate says it will increase rates by 15 percent in Oklahoma and Missouri and 10 percent in Illinois and Wisconsin.

Safeco, the eighth-largest home insurer, says it expects to increase rates at least 25 percent to its 1.5 million customers this year.

Insurance companies are earning less on their investments and on certain types of personal policies, while reeling from a surge in weather-related claims.

Besides facing increasing rates, some homeowners may be forced to pay more out of pocket after they file a claim.

Water / Sewer Backup

The Homeowners Policy may be extended to provide coverage for direct loss, subject to a deductible caused by water which backs up through sewers or drains including sump pump, sump pump well or other type systems designed to remove subsurface water which is drained from the foundation area.

1. Coverage is not available for risks in flood hazard areas.

2. Refer to Company prior to binding risks having losses, insured or not, caused by water which backs up from sewers, drains or sump pumps during the previous 5 years.

3. Requests to add coverage mid-term should be made to be effective a minimum of 10 days before a covered loss.

FLOOD = A general and temporary condition of partial or complete inundation of normally dry land areas from:

*Overflow of inland or tidal waters.
*The unusual and rapid accumulation or runoff of surface waters from any source.

*Mudslides (i.e., mudflows) which are proximately caused by flood, as defined above, and are akin to a river of liquid and flowing mud on the surface of normally dry land areas, as when earth is carried by a current of water and deposited along the path of the current.

*The collapse or subsidence of land along the shore of a lake or other body of water as a result of erosion or undermining caused by waves or currents of water exceeding the cyclical levels which result in flood, as defined above.