A Hard Insurance Market: What is it?

Let's talk about the "hard market"...

In our recent Market Update we talked about the fact that Louisiana is in a "hard market" right now, but how long will that last?

Much like the economy, a hard market is cyclical and may vary in length and severity depending on inflation rates, supply chain shortages, increased labor costs, and the type of insurance being affected. 

A hard market "softens" as things level out. As premiums rise and the market gains more capital, things tend to "soften".

When this happens the competition will heat up for insurance companies and premiums will moderate and in some cases, even decrease. 

It's a matter of time before this happens so we put together some information about surviving in this hard market until then!

What can I do during a hard market?

• Go with a broker:  Insurance brokers are independent professionals who are not affiliated with any particular insurance company, which means they can provide unbiased advice and recommendations based on their clients' needs

• Consult your agent: Your insurance agent can evaluate your risk profile and give you options specific to you to mitigate your exposure, while also finding the best rate available. 

• Improve your insurability: Keep documentation of any updates you're making to your home. To reduce claim exposure you can install an alarm system, a backup generator (permanently installed), a water leak detection system, residential sprinkler system, etc. These could make you really appealing to an insurance provider & could also provide discounts to your existing policy.  

• Avoid panic-induced carrier hopping: We get it, sometimes changing carrier will help your premium, and we look for those opportunities, but you may lose in the way of loyalty discounts. Changing too often can affect your rates make you less appealing.  

• Stay the course: Have faith that as with everything in life, this too shall pass. The market will soften and things will balance out. 

We're always available to discuss your risk profile and the market with you. We know that premiums increasing along with inflation can be a huge crunch on your wallet and we hope you know that we are always doing our very best to find the most comprehensive and affordable coverage for you.

At Kastner Insurance Group, we take finding customized coverage for each client to heart. We work with several carriers and are extremely familiar with every type of insurance that our client may need. We offer unbiased advice to make sure that our clients are fully covered and our customer service is unmatched. 

Call us today or visit our website for a customized quote.  

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