Why do Insurance Premiums Increase?

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        When it comes to insurance, it can be difficult to understand why the rates increase when we haven’t personally experienced catastrophe. However, this is because insurance rates depend on more than your personal experience. The premium that you pay goes to make sure your insurance company can pay out claims, to make sure your insurance company can cover the costs of running their business, and to cover the cost of reinsurance. With all of that said, you still might not understand why your insurance rates have increased this year. Though 2011 was a mild year for our state, the world suffered many catastrophes that affect us. Because of worldwide damage, reinsurers have increased their rates to recover from the financial blow from last year. This blow has affected Florida like it has around the world. Also, though the value of homes has dropped, the prices for repairing damage made to homes have stayed the same. When the insurance company pays out a property claim, they need to pay the proper amount for the repairs. Check out the following video for more information.


        If you still have questions regarding this topic, call Westgate-Jones Insurance Agency today at 352-787-7548 and an experienced agent will answer your questions.

Westgate-Jones Insurance Agency ~ 352-787-7548 ~ www.westgatejonesinsurance.com