As 2023 comes to a close, you may be spending time reflecting on the last year and celebrating all that you have accomplished. Or perhaps you are busy setting resolutions and looking forward to new beginnings. Either way, the end of the year is an ideal time to reassess your insurance needs. Any financial changes made this year or anticipated for the next year could impact your coverage. Your South Carolina Federal Insurance Solutions advisor is here help you:

Understand policy changes

Reviewing your coverage allows you to stay up-to-date with any adjustments that might affect your coverage, deductibles, or premiums. 

Account for life events

Did you experience any major life events, such as getting married or having children? Did you complete a big home renovation or purchase a new car for yourself or someone in your household? If you answered “yes” to any of these questions, you may need to adjust your home or auto insurance policies. 

Identify coverage gaps

Over time, your insurance needs will likely change. By reviewing your policies, you can identify any areas where you may need to add or adjust coverage. For example, you may have insured your home for $200,000 when you first bought it. Due to recent inflation and supply chain issues, your home may cost $300,000 to rebuild. That is a $100,000 gap in coverage, which could leave you without the proper resources to rebuild in the event of a loss.

Experience peace of mind

Enter the new year with confidence, knowing that you have reviewed and updated your insurance coverage to financially protect your changing circumstances.

Our team of experienced advisors at Insurance Solutions is here to help. Contact us today to schedule your complimentary insurance review.

While the Atlantic hurricane season officially kicks off on June 1 and lasts for six months, we typically see the most activity between August and October, with the peak being mid-September. Forecasters from the National Oceanic and Atmospheric Administration recently updated their predictions for the 2023 Atlantic Hurricane season¹, indicating that they now expect an above-normal level of activity this year. No matter what happens over the next few months, it is important to take the appropriate steps to prepare yourself and your family for potential disaster long before a storm hits the forecast.

Hurricane Preparedness Checklist

• Review hurricane preparedness information. First and foremost, have a plan to keep yourself and your family safe during a storm and understand what to do in the following days. If you need help pulling together your emergency plan, knowing your evacuation zone, or learning about hurricane warnings and alerts, visit the South Carolina Emergency Management Division website.

• Prepare and protect your home. Preparing your home to protect against hurricane damage is one of the most important things you can do in advance of a storm. Taking steps to eliminate weak branches and trees, install storm shutters, and seal outside wall openings such as vents and outdoor electrical outlets can help mitigate the impact of high winds and flooding. If you are a renter, be sure to speak with your property manager about the steps you can take together to protect the property and your belongings.  

• Know how to access your insurance policy information. Please utilize the client center on our website to access your policy information including details about your coverage and your carrier. It is important to be knowledgeable about these details in advance so that you understand your coverage including deductibles for different types of damage.

• Understand how to file a claim. In the event that your property sustains damage following a natural disaster, it is important to reach out to your insurance carrier to file a claim as soon as possible (while staying safe). Visit our website for a list of carriers, including links for filing a claim online.

Now is a great time to reach out to us for an insurance check-up to determine whether you have enough coverage to repair or replace your home. Keep in mind that standard homeowners insurance does not cover flooding, which is a separate policy and requires a 30-day waiting period in most cases. Neptune Flood Insurance offers a self-quoting option with the flexibility to customize your coverage to suit your specific needs.

Remember that natural disasters are not just a summer occurrence and can happen throughout the year. It is important to protect yourself and your property through every season. We are here to help – contact us to get started!

¹ https://www.noaa.gov/news-release/noaa-forecasters-increase-atlantic-hurricane-season-prediction-to-above-normal

As we begin a new school year and check items off of our never-ending to-do lists, there is another task that is worth considering if you have a new driver in your household: learning more about auto insurance. If you are a parent or guardian who has been through this before, you understand the expenses that come along with having a new driver. From the cost of an additional vehicle, to the recurring costs of maintenance, gas, and insurance, there is no shortage of opportunities to find ways to save while keeping your teen safe on the road.

Because we work with many parents and guardians of new drivers, we have compiled a few ways to help you keep costs down during this exciting, but often expensive season:

• If you are purchasing a car for your new driver, be sure to choose the right vehicle. Ensuring your teen’s safety is paramount, so make sure you are considering industry safety ratings before making a purchase. The National Highway Traffic Safety Administration’s New Car Assessment Program (NCAP) is a great resource for drivers of all ages. There are also a number of factors to consider that could impact your insurance premiums – such as the vehicle’s weight, horsepower, and overall value. If you are not sure where to start, check out this year’s teen vehicle list from the Insurance Institute for Highway Safety (IIHS) and Consumer Reports (CR).

• Reward good driving behavior. If your new driver is able to avoid tickets and fender benders and make good grades, you will likely see that reflected in your premiums. Consider passing along those cost savings to your new driver to encourage them to keep up the good work. While there are many ways to do this, some parents and guardians choose to formalize a safe driving agreement with a parent/teen driver contract. If you are interested, we have a template that we are happy to share; simply fill out the form on our Teen Driver page to learn more.

• Take advantage of telematics. Most carriers offer a telematics program to track driving behaviors, giving them a better understanding of the type of driver they are insuring. With many of these programs, parents and guardians have access to the same data as the insurance company, allowing you to stay informed of your new driver’s habits, such as rate of braking, average speed, and the time of day a car is driven. If the results are favorable, the insurance company may apply a discount to your premium.

While we know this can be a stressful time, it is also an exciting milestone for your family! Our team of experienced insurance advisors at South Carolina Federal Insurance Solutions is happy to walk you through what you can expect to ensure the transition is as seamless as possible.

We are currently in what is known as a hard market, which impacts insurance companies and consumers in a variety of ways. While insurers fight to offset growing costs, policyholders across the country are experiencing higher insurance premiums and deductibles, more stringent underwriting criteria, and are even receiving nonrenewal notices due to factors outside of their control. While a hard insurance market presents a unique set of challenges, it is important to remember that you do not have to face them alone.

1. Why are we in a hard market?  

Supply chain issues are a leading cause as it takes longer to repair or replace damaged property, and the costs for materials continue to increase, driving the pricing even higher. Plus, larger catastrophic weather events put additional pressure on insurers, as we see an increase in both the quantity and cost of claims. Finally, social inflation, which is the willingness of jurors to award largely unexpected sums of money at trial is forcing insurers to settle claims they may have traditionally taken to trial. All of these factors have caused insurance rates to increase.

2. I have not filed any claims through my insurance. Why are my premiums increasing?

Premium increases are not just tied to a specific customer’s coverage, but to the overall insurance market. As a result of rapidly increasing catastrophic losses and larger jury awards, the cost of claims for insurers has risen. Also, there is less competition as several insurance companies have withdrawn from the market, limiting consumers’ ability to shop around. These factors contribute to rising insurance premiums.  

3. How long will this hard market last?

Hard markets are cyclical, though we do not know how long they will last. They vary in length and severity, depending on prevailing economic challenges, inflation rates, and the types of insurance affected. A hard market will begin to “soften” as premiums rise and bring more capital back to the insurance market.

4. How can my insurance advisor help me in a hard market?

The advisors at South Carolina Federal Insurance Solutions are experienced professionals. We strive to be a valuable, trusted resource, and can help you navigate the current market conditions. We have long-standing relationships with insurers and are well-positioned to help you select the right coverage for your unique situation. We can provide information on available coverage options and recommend risk management resources that may help mitigate your exposure.

5. How can I get a better rate on my policy?

It is always a good idea to review your policy with your advisor to better understand your coverage limits and deductible amounts. Sometimes, another insurance carrier may offer the same or better coverage for a more affordable rate. If you want to change insurers, be sure to ask your advisor how the switch may affect your ability to be fully covered in case of a large claim.

Investing in risk management strategies can reduce your exposure and make you more attractive to insurers. There are a variety of protection devices you could put into place to help mitigate claim exposures such as a central fire and home security system, a permanently installed backup generator, a temperature monitoring system, and/or a water leak detection system. Installing these systems could garner additional discounts to your policy.

Source: Trusted Choice Agent Toolkit: Navigating Client Communications in a Hard Market