Insurance is growing more costly due to natural disasters in the past
Kansas homeowners insurance rates are on the rise and it may be because of storms in the past. In 2011, the state suffered the most financial damaging storm season it has ever seen. An outbreak of tornadoes and hundreds of hailstorms punished Kansas, causing an estimated $1.1 billion in insured losses. The majority of these losses came from damage to homes and properties and 2011 accounted for the costliest financial blow that the state’s insurance sector had ever received.
2011 proves to be the most financially damaging year for Kansas in terms of natural disasters
In terms of finances, many of the victims that suffered from natural disasters in 2011 are still working on recovering. This goes for insurance companies as well as consumers. Many insurers are still reeling from the financial impact and are taking steps to recover from their losses. In 2013, insurers began raising rates on homeowners coverage. Rates rose by an average of 9.9% throughout Kansas, with rate increases coming from more than 100 insurance companies. In 2012, insurance rates rose by an average of 10.9%.
Insured losses hit a low in 2010, but surge again in 2011 and beyond
Losses relating to natural disasters have been increasing in Kansas since 2008. Insurance companies had been warning that insured losses would eventually lead to higher homeowners insurance rates, but many believed that storm-related losses were beginning to diminish in 2010. That year, some $370 million in insured losses relating to natural disasters was reported throughout Kansas, creating a sense among insurers that their problem with catastrophe losses could be at an end for the time being.
Homeowners show concern for increasing insurance costs
Rising homeowners insurance rates were somewhat expected by state officials and residents, but many homeowners have issued complaints regarding rate increases. These homeowners suggest that higher rates are making their insurance coverage unmanageable from a financial perspective. Despite the financial pressure that higher rates may place on consumers, insurance companies are eager to recover their losses in order to fortify themselves from any future disasters that could cause more financial damage.