Date: November 22, 2005
For more information contact: Eileen Mallow, Assistant Deputy Commissioner, (608) 266-7843 or eileen.mallow@wisconsin.gov

How Catastrophic Events Impact Wisconsin
Homeowner's Insurance Rates

Madison, WI—With all the natural disasters our country and state have been faced with in the past months, people may wonder how this will affect their homeowner's insurance rates. "I want to make sure that citizens don't forget that Wisconsin has some of the lowest prices for homeowner's insurance in the United States," said Jorge Gomez, Commissioner of Insurance. "The insurance market is constantly changing and in the event of an increase in rates because of losses from catastrophes, Wisconsin continues its history of low property insurance prices."

It is too early to tell if the hurricanes, tornados, earthquakes and other catastrophic events in the last year will impact future premium rates. Rates generally rise in the geographic region for the type of insurance impacted by the disasters. Based on the rates filed with the Office of the Commissioner of Insurance (OCI), it is expected that the rates in Wisconsin will be stable or decrease slightly in the near future.

Many insurance companies are insured by other insurance companies, known as reinsurers, who have also been heavily impacted by these events. If reinsurance rates increase, there is a possibility that insurance premiums could increase in the future. Premiums in a state depend in part on the frequency of natural disasters in the state and whether the insurance companies depend heavily on reinsurers affected by disasters elsewhere.

Both home and automobile insurance are relatively inexpensive in Wisconsin when compared to the rest of the country. There are over 200 companies selling homeowner's insurance in Wisconsin. Because the market is so competitive, consumers can shop around to find a fair price for the coverage they seek.

Consider the following when shopping for homeowner's insurance:

• Shop around. Ask friends and co-workers whether they are satisfied with their insurance company and agent.
• Browse on the Internet, it can be a great source of insurance information.
• Increase your deductibles to lower premium payments. While out-of-pocket cost is higher when damages occur, the money saved by lowering the premium with a higher deductible may more than offset the cost over the long-term.
• Talk with your agent, there may be ways to lower your bill.
• Take a second look at your present coverage and premium. Check to make sure your property has been insured to the value and type of coverage best for you. Discuss coverage questions with your agent.

Publications such as "Consumers Guide to Homeowner's Insurance," can be ordered free from the agency by writing to OCI Publications, P.O. Box 7873, Madison, WI 53707-7873, calling 800-236-8517 or visiting the OCI Web site at oci.wi.gov. The publication is also available in Spanish.

Created by the Legislature in 1871, Wisconsin's Office of the Commissioner of Insurance (OCI) was vested with broad powers to ensure that the insurance industry responsibly and adequately met the insurance needs of Wisconsin citizens. Today, OCI's mission is to lead the way in informing and protecting the public and responding to its insurance needs.