Date: October 30, 2001
For more information contact: Eileen Mallow (608) 266-7843 or eileen.mallow@wisconsin.gov

Madison, WI--If you've recently received your homeowner's insurance premium notice, you might have noticed that your premium has gone up since last year. "We expect our homeowner's premiums to increase some each year as a result of the inflation protection we purchased for our policy," says Insurance Commissioner Connie O'Connell. "But, these increases are also attributable to the large amount of claims homeowners' insurers have paid over the last several years. Shopping around can payoff by helping each homeowner find the coverage they need at the best possible price."

In recent years homeowners claims costs and expenses have risen more than premium and investment income requiring the base premium rates charged by many insurance companies to increase. In order for many insurance companies to continue providing homeowners insurance coverage at a reasonable profit, they needed to raise rates.

The tragic events of September 11, will also likely impact future premium rates, especially for property and casualty insurance coverages. This is because the insurance companies who insure other insurance companies, namely reinsurers, were especially impacted by the terrorist attacks. They will likely raise the premiums they charge their insurer-customers who will need to pass those increased costs on to their customers, namely consumers. Once the effects on the insurance industry of the September 11 events are better in focus, Commissioner O'Connell will provide her assessment of the possible impact of September 11 on Wisconsin's insurance market place.

In Wisconsin, insurance companies must file their premium rates with the Office of the Commissioner of Insurance (OCI) within 30 days after they are implemented. The OCI does not approve premium rates. Under Wisconsin insurance law, premium rates are not considered to be excessive if there is sufficient competition in the market place. There are over 200 insurance companies licensed by the OCI to offer homeowners insurance coverage in Wisconsin.

Commissioner O'Connell offers these suggestions on what you can do when your homeowner's insurance rates go up:

Check with your agent. He or she can advise you on some of things you can do.

1. Shop around. There are over 200 insurers that provide homeowners coverage in Wisconsin. Premiums could vary significantly amongst the companies. Do some research and chose the coverage that provides the most value for your premium dollar.
2. Increase your deductible. If you have $100 or $250 deductible on your policy, check with your lender and consider increasing your deductible. Contact your agent or insurance company and find out how much premium you can save if you increase the deductible to $500 or $1,000. You will be surprised the difference in premium the amount of the deductible makes.
3. Make sure that your insurer has properly calculated your premium. Sometimes mistakes are made and you may have been placed in the improper rating classification. You can do this through your agent or, if you do not have an agent, directly with the insurance company.

These are just some of the things you can do in response to increasing premium rates. The OCI has a consumer brochure entitled Consumer's Guide to Homeowner's Insurance with additional consumer tips. This guide is available on the OCI web site at http://oci.wi.gov/pub_list/pi-015.htm. You can also obtain a copy of this brochure or other insurance-related brochures by calling the office at 800-236-8517 or by writing OCI at:

Office of the Commissioner of Insurance
P O Box 7873
Madison, WI 53707-7873