Why the Increase?

What happened to my umbrella pricing? This is a question being asked by real estate clients on a regular basis over the past year. The insurance industry, particularly in the real estate niche, has seen some significant changes in umbrella and excess rating this year. This change has been coming for some time but has made its way to the Midwest. Over the past several years with increased claims hitting the insurance markets from hurricanes, to tornados to wildfires, it has only been a matter of time.

These increases have been seen with standard insurance carriers taking on the full limit of coverage, but it has been seen even more so in the insurance program space. Historically, many insured have looked to programs backed by numerous carriers contributing at various percentages to make up the coverage amount. Unfortunately, many of those carriers have been hit the hardest with claims over the past several years. In most cases the rate increases have been double digits. In other cases, pricing has stayed the same, but the limit of coverage offered has been dramatically reduced.

What Happens Next?

So, what happens next? Now more than ever it is essential that insured look to partner with a broker who is embedded in their industry. A niche specialized broker will be able to keep you abreast as to what’s happing across the market and advise on potential solutions to secure the coverages needed. A specialist will think outside the box to accomplish this. A developing trend is layering carriers outside of programs to meet the coverage limits that are needed and or required.

Here are a few questions to ask yourself:

  • Is my broker advising me of what is happening in the marketplace and how it will impact my business?
  • Does my broker know my industry?
  • Does my broker come to me with creative solutions or just quote options?

If you have questions about what’s happening in the insurance marketplace or have been having trouble with your umbrella reach out to the team at Crum-Halsted Chicago.


by Greg Jones