Catastrophes could cause your insurance to double in future

By  | 

TEXOMA -- The recent tornadoes in both Oklahoma and Texas might not have directly impacted the Texoma area, but insurance agents say your wallet might feel the effects down the road.

Storm season is in full swing for Abel Aleman Roofing owner, Tony Aleman.

According to Aleman, "This has been such a bad storm season. One of the worst on the record so far and we're not even into hurricane season yet," and "Currently we have crews down in Austin and then Granbury and possibly going out to Amarillo"

Aleman says even though disasters like the West explosion and the recent rash of tornadoes haven't hit Texoma we'll be impacted and insurance agents agree.
Insurance agent, Andy Faber, says "it's just part of the business," and that insurance companies try to plan for disasters each year but when it comes to mother nature you can't be too confident.

According to Faber, "If a catastrophe happens and the claims at the end of the year are higher than what they anticipated. Then, to re-coop their money they have to raise the rates,"

Faber says there's no warning when this happens. So you'll just have to be aware of your renewal and if it's gone up this is why.

He says it'll be one to two years down the road before you see an increase due to this year's disasters.

Faber added, "Remember the wildfires that happened in Texas a few summers ago. Those things are now impacting insurance rates today. So, it's not going to be immediate."

Insurance companies also predict that your deductibles could double in order to make up for losses.