Pekin Insurance
- Thread starter ruxCYtable
- Start date
They aren't coveraging iowa any more as an insurer or they aren't having employees there?
Done covering in Iowa. All customers will be non-renewed.
They're not going to be the only one...
The market is collapsing.
The market is collapsing.
It's probably along the same lines as this story from June.
"trimming its Iowa and Illinois homeowners exposure, with the Midwest-focused carrier blaming inflation, elevated storm activity and higher reinsurance costs"
https://www.theinsurer.com/news/pek...plans-citing-inflation-and-reinsurance-costs/
The average home insurer in Iowa right now is paying out $1.06 in claims for every $1.00 it takes in premium with some pushing $1.20.
It's going to get ugly from an availability and premium standpoint.
It's going to get ugly from an availability and premium standpoint.
What type of claims? I think of Florida and hurricanes, but we are talking Iowa. When I moved from Iowa I was surprised how low insurance costs in Iowa especially auto.
Like most companies, they lost their asses in 2020, and losses have continued. The derecho of 2020 was the largest storm in terms of losses in Iowa history. A lot of people don't realize the hail storm of April 2020 was the second largest.
IMT, based in West Des Moines, has paused new business in Iowa. Nationwide has not officially pulled out, but they have tightened underwriting requirements to the point it's almost impossible to write new business.
Severe weather in Iowa has increased dramatically. Wind and hail damage is rampant.
Wind and Hail. We're getting absolutely killed with wind and hail.
Yup. I've basically got 2 carriers at this point and one of them I absolutely hate but they'll take the business.
I don't know who that guy is. He may be referring to a temporary pause in new business. This is going to be permanent and it IS new news. In fact, it isn't even public yet.
I work in the insurance industry, and for each of the past three years, we've had our worst storm years. The company I work for is already a third over what they budgeted for storms (and they budgeted high). It just never seems to end.
I do know quite a few people that have gotten roofs and/or siding replaced from storm damage over the last 1-2 years. Didn't realize it was that much of a trend across the state.
We were getting down there. Our agency was proactive and we added two new carriers this year, so we've still got options, but everything is high. Higher deductibles are going to become the way of the world.
I think some of the claims adjusting is a little off. Saw a claim where it was ACV on the roof. The shingles were knocked for about 60% gone, but they paid 100% of all removal costs. I think if you have ACV, that if half the life of your shingles is used up, it should only be half the cost of removal and other stuff. Otherwise if it was deemed only 10% life is left, that owner would pay 100% in a year or two with no damage. With damage, they pay 90% of the new shingles but 0% of removal and a few other things.
- Mar 27, 2006
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The big hailstorm that hit central Iowa last spring has resulted in nearly every home in our development getting new roofs and siding. The damage was very widespread.
