What Every Ohio Homeowner Should Know Before the Next Storm Hits

If it feels like your homeowners insurance premium has gone up significantly over the last few years, you’re not imagining it.

According to a recent analysis by The Wall Street Journal, highlighted by the New York Post, many of America’s largest insurance companies are paying a smaller percentage of homeowner claims than they did a decade ago—even as premiums continue to climb.

The report found that several household-name insurers closed a surprisingly high percentage of homeowner claims without making a payment:

• Farmers Insurance: 52%
• USAA: 51%
• Allstate: 47%
• Liberty Mutual: 41%
• State Farm: 31%

Think about that for a moment.

Many of the companies with the biggest advertising budgets, the most recognizable mascots, and the catchiest jingles are also closing a significant number of claims without payment.

Now, it’s important to be fair. An unpaid claim doesn’t automatically mean the insurance company did something wrong. Some claims fall below the deductible. Others involve exclusions or damages that simply aren’t covered by the policy.

But it does raise an important question:

Do you really know what your homeowners policy covers?

 

Why State Farm Deserves a Closer Look

At first glance, State Farm’s 31% rate may not look as alarming as some of its competitors.

But percentages don’t tell the whole story.

State Farm is the largest homeowners insurance company in the United States. Because of its enormous market share, even a lower percentage can represent a much larger number of homeowners than a higher percentage at a smaller carrier.

Imagine one insurance company denies 50% of 100,000 claims. That’s 50,000 homeowners left without payment.

Now imagine another insurer closes 31% of one million claims without payment. That’s 310,000 homeowners affected.

The percentage is lower. The number of families impacted is dramatically higher.

That’s why consumers shouldn’t focus solely on commercials, brand recognition, or familiar slogans. The more important question is:

What happens when you actually need to file a claim?

The Insurance Commercial Doesn’t Matter When Your Roof Is Damaged

Most homeowners buy insurance based on one of three things:

• Price
• Familiarity
• Advertising

Unfortunately, none of those things matter much when a hailstorm tears through your roof, a tree falls on your home, or a pipe bursts in your basement.

That’s when the fine print starts to matter.

That’s when you find out whether your deductible is $1,000 or $10,000.

That’s when you discover whether your policy includes a separate wind or hail deductible.

That’s when you learn whether your replacement cost coverage has kept up with today’s construction costs.

And that’s when many homeowners realize the policy they purchased isn’t necessarily the policy they thought they had.

As I often tell clients:

When your roof is leaking, the guy from the commercial isn’t making the claims decision. The claims department is.

Why More Claims Are Being Closed Without Payment

Several factors are contributing to the increase in unpaid claims across the insurance industry.

Higher deductibles have become increasingly common, especially for wind and hail damage. Many policies now contain separate deductibles that homeowners don’t realize exist until they file a claim.

At the same time, severe weather events have become more frequent and more costly. Repair costs, labor costs, and building material prices have all increased significantly.

As a result, insurance companies are taking a closer look at claims, and homeowners are often finding that their coverage doesn’t respond the way they expected.

The problem isn’t always the insurance company.

Sometimes the problem is that nobody explained the policy clearly in the first place.

The Biggest Insurance Company Isn’t Always the Best Insurance Company

Many homeowners assume that a large insurance company automatically offers better protection.

That’s not necessarily true.

The goal isn’t to find the biggest insurance company.

The goal is to find the company that offers the right combination of coverage, service, claims handling, and value for your specific situation.

A policy that looks inexpensive today can become very expensive if it leaves you exposed when you need it most.

That’s why comparing coverage—not just price—is so important.

Why Independent Agents Matter More Than Ever

As an independent insurance agency, Lew Griffin Insurance isn’t tied to one insurance company.

We don’t work for State Farm. We don’t work for Allstate. We don’t work for Farmers.

We work for you.

That means we can compare multiple carriers, explain the differences between policies, identify potential coverage gaps, and help you understand exactly what you’re buying before a claim ever occurs.

Questions every homeowner should be asking include:

• What is my deductible?
• Do I have a separate wind or hail deductible?
• Are my roof and detached structures fully covered?
• Does my policy provide adequate replacement cost coverage?
• Are there exclusions that could leave me exposed after a major loss?

If you don’t know the answers, you’re not alone.

Most homeowners don’t.

Before the Next Storm Hits, Ask Yourself One Question

If your home suffered significant damage tomorrow, would you be completely confident your policy would respond the way you expect?

If the answer is “I’m not sure,” it’s probably time for a coverage review.

Because when it comes to homeowners insurance, the catchiest jingle on television isn’t nearly as important as understanding what happens when you actually need to use your coverage.

At Lew Griffin Insurance, we’ll help you understand your policy, compare your options, and make sure you’re protected when it matters most.

Schedule a Home Insurance Review

Whether you’re concerned about rising premiums, unsure about your current coverage, or simply want a second opinion, Lew Griffin Insurance is here to help.

Because real protection isn’t about commercials.

It’s about knowing your coverage before you need it.