“Since 2009, we’ve had year after year of catastrophic record-breaking hail storms and catastrophic fires,” said Carole Walker, executive director of the Rocky Mountain Insurance Information Association.
And after July 15th’s huge hailstorm in Greenwood Village, many Colorado homeowners can guess why. Colorado now ranks second only to Texas – a state three times its size – in total yearly hail damage. That also makes Colorado one of the top six states for highest average annual insurance claims over the past five years.
Walker calls it a “volatile, catastrophic trend”, while many homeowners now see yearly roof replacements – due to hail damage – as simply part of living in Colorado.
However, for residents of the state, all of this amounts to one thing – rising insurance premiums. As claims per home have increased 179 percent from 1997-2013, Walker says “Unfortunately, Colorado is now on that list that nobody wants to be on.”
That may also be why the latest report by the Insurance Research Council doesn’t even include 2014, which was a particularly bad year for hail.
Yet with 2016 looking like it could match, or even exceed, hail totals for 2014, for homeowners, it’s a sobering story. According to Walker, some homeowners will get double-digit percentage increases as their renewals come up next years. As an example, if you are currently paying $1,370.74 per year, you could now be paying $1,981.99 per year (a 46 percent increase).
While hail may seem like a less likely factor in insurance rate increases than say, a wildfire that burns for days, the reality is that a hailstorm that lasts just minutes but hits many homes –resulting in damaged roofs, siding, and decks – causes much more damage.
And that’s damage that, for homeowners, may be costly when it comes to insurance premiums.
This article was brought to you by ASAP Roofing, a national leader in roofing restoration, hail damage, and exceptional customer service. ASAP has offices in Denver, Colorado, Dallas, Texas, and Indianapolis, Indiana.