Man in suit conducting business on cell phone | Alliant Private Client

Our Approach

We see insurance as a way to minimize life's risks so you can maximize its rewards.

Article Image Protect your legacy. Safeguard your future. Article Image Protect your legacy. Safeguard your future.

Protect your legacy. Safeguard your future.

Informed by nearly a century of experience, Alliant Private Client partners with you—or your advisors—to manage your life’s complex risks. Our clear, focused process results in smart, customized insurance solutions. Though our philosophy is local with licensed professionals in all 50 states, our reach is global through an international partnership with Brokerslink.

Our risk review process

After reviewing any existing insurance programs, we will ask about your passions, financial goals, lifestyle, challenges and comfort with risk. Next, we will outline your exposure and vulnerabilities, then help you make informed, strategic coverage choices. Finally, leveraging our deep market connections and technical expertise, we will negotiate effective and efficient programs for a host of assets and potential liabilities.

  1. Review existing insurance
  2. Clarify needs, challenges & risk tolerance
  3. Assess exposures & vulnerabilities
  4. Create coverage strategy
  5. Negotiate new policies
  6. Provide comprehensive claim services

An advocate in your corner

Should a loss occur, your private client team will respond rapidly and remain personally involved throughout the recovery process, from mitigating damage to finalizing a settlement and everything in between.

Claim advocacy
Family laughing outside of affluent home | Alliant Private Client Family laughing outside of affluent home | Alliant Private Client

Experts in protecting the things you love

Our expertise encompasses nearly every passion and pursuit, allowing us to build personalized insurance solutions that reflect your interests and needs.

Our expertise
Bow of yacht | Alliant Private Client Bow of yacht | Alliant Private Client

Unique perspectives from our experts

Article Image 0

Celebrating safely: five common holiday-season risks and how to avoid them

The holiday season is a time to come together with family and friends, delight loved ones with beautiful gifts, and make beautiful memories. It’s the most wonderful time of the year, a time of gathering, giving, and joy.  However, as risk managers, we often hear of not-so-festive stories—holiday scams, charitable fraud, dangerous decor, and the like—that can jeopardize these beautiful memories. To ensure everything stays joyful, we asked our experts to identify the most common risks of the holiday season and the precautions you can take to lessen the chance of them happening to you. Beware of charity scams There will always be criminals just waiting to take advantage of your best intentions. They’ll mimic authentic causes online, slightly tweaking names and logos of well-known organizations; pretend to represent legitimate causes on social media or via email; and set up phony fundraising pages in the wake of humanitarian disasters, all as a means to steal your donations. Protect yourself by… becoming more vigilant of the underhanded tactics mentioned above. Before you give, especially if you are planning a significant gift, carefully review the website and board of directors for telling gaps or elisions; check legitimacy and reputation with online databases like CharityNavigator and GuideStar, or ask representatives of the organization itself for information about its programs and fund allocation. Avoid online scams Ne’er-do-wells will also capitalize on your gift-giving generosity, using bogus texts or emails about “delivery issues” and “account problems” to steal your password or gain access to your accounts or identity. Another common scam: shady vendors on established sites like Amazon and Walmart selling inferior and counterfeit goods. Protect yourself by… carefully inspecting all links. Better yet, instead of clicking through, you should directly contact the referenced store, package carrier, or financial institution to see if they sent you the message in the first place. And you should always examine a seller’s pedigree when you purchase on social media or online platforms, to ensure you are not engaging with a subpar drop shipper. Travel with care Though most vacations leave you with only positive memories, we know that expected delights can suddenly turn otherwise. In fact, some can be forever marred by incidents of stolen valuables and travel documents, unexpected illnesses, natural disasters, and threatened or actual kidnappings. Protect yourself by… taking precautions before you take off. Back up important documents. Confirm that your travel and property insurance policies are sufficient to cover your plans and the possessions you will be taking with you. (If circumstances call for it, you may need to secure a kidnapping and ransom policy.) And when you are away, use the hotel vault — not your room safe — to secure valuables, follow local protocols and laws, and don’t post pictures or updates on social media until you are safely back home, so as not to tip off burglars to your empty residence. Minimize risk at festive gatherings Hosting holiday get-togethers is fun, especially when they go off without a hitch. Sometimes, though, the fun is tempered by an injured guest, a damaged piece of art, a drinking and driving incident, or harassment of a high-profile guest. Protect yourself by … setting parameters, literal and otherwise. Seal off areas that need to be off-limits — a perilous staircase or a room that houses a valuable collection, for example. Imagine the potential flow of guests, to ensure that a sculpture isn’t bumped accidentally. Instruct bartenders to stop serving anyone who appears to have had too much to drink, and parking valets to keep car keys out of the hands of the intoxicated. Hire security if there’s even the slightest possibility of attracting paparazzi. And most importantly, confirm that all vendors are properly insured. Protect your home Homes that become uninhabited when you retreat to another residence are more vulnerable to damage, especially as no one will be there to spot small issues before they grow bigger. Similarly, if you’ve festooned your home with candles and, decorative lights, fire, and smoke damage are a possibility. Protect yourself by … hiring a caretaker to check in on your residence to make sure the heat is properly set; water systems are shut off and there are no leaks or other damage that will prevent issues in your absence.  It’s been a stressful year for many of our clients so we are committed to giving everyone the best chance to fully enjoy what should be the most enjoyable part of the season. Whether you are spending time with family, attending galas and parties, traveling to exciting locales, or spending quiet time in your mountain getaway, we want to help you make sure the experience is an invigorating one. If you have any questions or concerns about seasonal risks — or if you want to get a head start on your risk management strategy for 2024, please be in touch. ...

More info
Article Image 1

What to do if you are the victim of cyber fraud

Scams existed long before the Internet, but today’s hyper-connectivity has made defrauding innocent victims much more prevalent. In fact, in just one year the FBI reported losses in excess of $10 billion from cybercrimes and that number only accounts for reported fraud. Unfortunately, these swindles can absolutely happen to anyone—and will, as long as the scammers continue to hone their tactics. Fortunately, many carriers have responded to this digital scourge by offering improved insurance options. While first-generation solutions provided only minimal coverage, some carriers now offer reimbursements as high as $1 million or more for losses incurred through extortion, phishing, and other types of fraud. Every policy is unique, and thus, you should speak with your broker to understand your coverage. And of course, if you suspect you are a victim, immediately reach out to your insurance professional for resources and assistance.  Identifying and reacting to the four most common cyber scams The below outlines the first steps you should take after calling your insurance advisor, should you fall prey to the four most common types of cyber fraud. 1. Phishing Scammers gain entry into your accounts after you click on “urgent” email or text requests that appear to come from legitimate organizations (i.e., your bank, FedEx, Amazon). What you should do: Depending upon what was exposed, you may freeze your credit (social security number), change your login information and/or password, and contact your bank. 2. Identity theft Criminals steal your personal information, gain access to your banking information, and open new accounts in your name, securing loans, requesting wires and more. What you should do: Freeze your credit and contact whatever entity was co-opted in the scam, as further investigation into the activity will likely be necessary. Alert applicable financial institutions to ensure no other funds are stolen. 3. Malware and extortion Harmful software is installed on your device after you are lured into visiting spurious websites or engaging with infected downloads or email attachments. With ransomware, one of the most profitable malware iterations is when the criminal encrypts your files, then demands money to free them again. This can also lead to extortion if they uncover compromising information, and demand money to keep it out of the public eye. What you should do: Download and run security software on the affected computer, removing any malware if possible. Consider hiring a crisis management firm to guide a public response should there be a concern about reputational damage related to the fraud. 4. Fake shopping sites You think you are buying a product on Amazon or Instagram but are actually dealing with a dropshipper, a third-party purveyor who sends an inferior product or nothing at all. What you should do: Contact the institution who handled your payment—credit card company, bank, gift card issuer, etc.— to reverse the charges or refund your money. Avoiding cyber fraud going forward Our goal, of course, is to help you make it as hard as possible for anyone to defraud you. To that end, whether or not you’ve already experienced cyber fraud, we recommend the following best practices: Accept two-factor authentication wherever it is offered: After logging on with your name and password, the site sends a unique code to your mobile or email for you to input. Keep your software updated: Immediately install any updates for your computer, mobile, and smart home systems as those updates are often released to fix a discovered vulnerability that could put you and your information at risk. Use a password manager: It’s best not to use a password for more than one login. A password manager will help you create a strong password that is then stored in your encrypted keychain. Establish security protocols for all financial transactions: Create processes with your advisors and institutions that require multiple approvals for any significant transfers or wires. Be wary of links: If you get a notice about any of your accounts or from any of your institutions, carefully confirm the sender before clicking any links as scammers have become quite adept at formatting communications to appear legitimate. When in doubt, don’t click, and contact the institution through their own website or listed phone number. As long as we remain dependent on technology to enrich our lives, there will always be those who seek to take advantage of that dependence. But by familiarizing yourself with their nefarious tactics and taking immediate action should something happen as well as employing all possible precautions, you can effectively navigate the challenges today.   ...

More info
Article Image 2

What you should know about non-admitted insurance

In disaster-prone states, insurance carriers are faced with a basic math reality: They cannot net enough in premiums to justify underwriting large and looming risks, particularly in areas of concentrated wealth. At least not the way they had done previously, which is through state-governed channels that largely determined rates and offerings—a type of coverage termed “admitted.” In California, for example, state regulations prevent carriers from modifying contracts or excluding particular coverage—say, for wildfires—from policies. Nor are they allowed to raise rates in riskier zones without the review and approval from the state. This makes it virtually impossible for carriers to offer coverage that makes economic sense. The proliferation of sophisticated mapping and risk-rating software make the precarious situation even more evident to carriers.  As a result, the industry has become more innovative in serving clients in disaster-prone areas, including exploring coverage options that are not governed by the state—a type of coverage termed “non-admitted.” This allows for greater flexibility within the tight margins they face, a strategy we believe will only grow more common in the evolving risk landscape.  To that end, we want to educate you further about these options, and help you understand why non-admitted solutions may be beneficial for your portfolio, starting with a clear explanation of the terms:  Admitted carriers: States regulate the insurance industry, so carriers that are either based or do business in a specific state, must abide by that state’s rules to be “admitted.” These rules and regulations are largely designed to ensure that carriers: Are currently and will remain solvent, or able to pay out claims. Provide fair treatment to all consumers.  In many ways, this arrangement is beneficial to both the carrier and client alike: The state’s imprimatur lends the carrier legitimacy, and that legitimacy puts potential clients at ease. Furthering that sense of trust: the fact that the state will honor claims should the carrier become insolvent, or unable to pay claims. Non-admitted carriers: This describes carriers who opt out of the admission process described above so that they have the freedom to determine their own rates and coverage. These “non-admitted” carriers can still do business in a state; however, they do not earn that states seal of approval, and the state will not reimburse or assist their customers if the carrier is unable to make payouts on claims.  Such carriers offer an important benefit to some consumers: customization. Since they are not beholden to state-controlled standards, non-admitted carriers can more readily offer useful policies to clients whose loss history or location otherwise makes them a coverage risk. For example, consider a client who has had three water losses in as many years and is currently unable to obtain a policy with an admitted carrier. A non-admitted carrier can issue a policy with a high water-loss deductible, offering the client some level of protection while also adhering to the carrier’s business goals and financial health.  To be very clear, non-admitted status is not an indication that a carrier will not be able to pay out claims from losses. In fact, many non-admitted carriers have been previously validated by well-respected private auditing agencies such as A.M. Best. With a little research, consumers and brokers can definitively verify the standing of non-admitted firms. What This Means for You In this challenging market, where our goal is to provide you the best possible protection, we maintain relationships with both admitted and non-admitted insurance providers. Of course, we are sensitive to the concern some clients may have about non-admitted coverage. Rest assured, we are diligent in our selection of partners. It is also helpful to keep in mind that, in the end, non-admitted insurance providers are just as incentivized to satisfy clients as admitted ones are. We want you to be able to rely on us to find the best possible coverage options for you and believe that the agility embedded in non-admitted policies makes them a valuable option for many clients. If your account executive suggests a non-admitted policy, know that they will explain why it is the right option and why you can be comfortable trusting it. ...

More info
Article Image 3

A guide to protecting your luxury wardrobe collections

A recent Sotheby’s auction was billed as the “Visionary Collection of Joseph Lau,” but it wasn’t the businessman’s art or fine wine – rather, it was 76 luxury handbags. This phenomenal collection included six rare Birkin’s and a bronze Kelly bag that fetched more than $3 million. Other record-breaking sales such as Air Jordans and feted couture exhibits, are just a few examples of the rising passion and interest of luxury wardrobes. Whether you are purchasing such collectibles as an investment, to pass down to future generations, or to wear now, we want to make sure each piece continues to be only a source of pleasure for you. Our guidance below will help keep your cherished collectibles in mint condition and ensure they are properly protected in the event of damage or destruction. Navigating the acquisition process With the luxury market soaring, sadly, fakes are too, especially in the sneaker and luxury handbag categories. The New York Times recently reported on the increasing number of “superfakes”—knockoffs so convincing even the best-trained eye can’t always tell the difference. Being aware of this counterfeit market is important for a variety of reasons, not least because most policies do not protect against fraudulent purchases. Therefore, if you are buying from someone other than an authorized dealer, you’ll want to take the following precautions: Research the seller, including reviews and feedback scores of previous buyers. Beware of discounts; if the item or deal seems too good to be true, it likely is. Educate yourself about the product, so you can confirm relevant details and spot potential issues, such as flaws in stitching and embroidery. Storing your collection safely Humidity, leaks, and harmful cleaning products are just a few of the many perils lurking when your collectibles are displayed or stored away. Therefore, we recommend the following safekeeping best practices: Keep everything in a climate-controlled environment—the industry standard is 70℉, 50% humidity—to prevent damage to leather and fabric goods. Similarly, your closet should not be exposed to direct sunlight or heat sources. Keep unworn sneakers in roomy boxes, to make sure they maintain their shape. Most experts recommend clear plastic since they are stronger than the original box. Empty handbags of everyday items and help keep their shape by stuffing with archival fillers like a purse pillow or acid-free paper. Wrap exposed hardware in a lint-free cloth and remove detachable straps. Store bags and straps in their own breathable, neutral-colored dust bag or the original box. Store hanging garments on non-wire hangers in breathable bags made of muslin or polypropylene. Also, place acid-free paper between folded clothing items, particularly knits and lace shirts.Consider professional storage spaces that cater to owners of couture collections, their sole focus is to properly store and transport clothing, shoes, and accessories. Precautions for wearing collectibles In the event you have that perfect occasion to showcase your couture or cherished accessory, you should consider the following precautions beforehand: Refrain from using oily, alcohol- or perfume-based products on your skin, because contact with them could cause damage to the collectible. Be mindful when eating and drinking, especially staining hazards like red wines. Choose carefully what you place in your handbag and always consider bringing a portable handbag hanger, so you never have to place the bag on the floor. Before storing, dust both the interior and exterior. Preserving the beauty of your collectibles Sneakers that you wear do not need professional cleaning, but they should be kept clean with products that won’t fade their color. However, clothing items or handbags that suffer stains or other marks should be professionally cleaned by a company that has sufficient experience in caring for high-value fashion and accessories. Therefore, look for someone who: Specializes in couture and designer handbags and will outsource to a relevant professional for any work they are unqualified to do on their own. Offers a detailed inspection of each piece and an explanation of what the work will entail. Package items in the appropriate materials, including acid-free paper and breathable garment bags. Protecting your investment Some insurance carriers offer special “wearables” policies, but often we recommend scheduling the items as part of your collectible’s policy. The relevant coverage can vary significantly, though most policies include theft protection, water damage, and other common risks. We suggest you keep a regularly updated list of every item in your collection and be sure to speak with your broker when you acquire a new piece. Also, be sure you check in with your professional to ensure your collection is properly covered. Whether you are drawn to a piece because of its unique features, designer, or storied history – this guide will help keep the original beauty preserved. To ensure your collection will be treasured for years to come, be sure you work with a professional with deep expertise in this luxury market. ...

More info
Article Image 4

Filing an insurance claim in today’s evolving market

As we continue to navigate this unprecedented insurance landscape alongside you, our consultative approach to handling your potential claim is more important than ever. With insurance carriers continuing to raise premiums or, worse, decline renewals of long-standing policies, we want you to better understand the broader shift around filing even the smallest claims, which can help safeguard your long-term insurability. As such, our recommendation is that you call us first to discuss any loss or possible claim. To state it as clearly as possible, we never want you to file a claim directly with your insurance carrier before speaking with your personal account executive or with our dedicated, 24/7 claims team (800-221-5830). As your risk management advisors, we will look holistically at your insurance program and offer guidance as to what we think is the best approach for your specific situation, and given the market, so that you can make the most informed decision. This discussion will also allow us to best support your choice and advocate on your behalf. To help you prepare for such a conversation, we have outlined the six key considerations we would explore together before you decide whether to file a claim: 1. Was the loss caused by a catastrophic event? When the answer is yes, our team will most likely advise you to file a claim. The industry codes for catastrophic events like wildfires, floods, major storms, and earthquakes, which allows carriers to isolate related losses and means they will likely not hold that claim against you when it comes time to renew your policy. 2. Was a third party involved? If someone is injured or another person’s property is damaged, we will most likely recommend that you file a claim to ensure your assets are protected. With that in mind, we encourage you not to pull out your checkbook at the scene of a crash in the hope of avoiding an insurance claim, nor should you ever volunteer to cover someone’s losses before consulting our claims team or your account executive. 3. If no catastrophic event or third party was involved, what is your tolerance for paying out of pocket? Our claims experts have begun to ask how much clients are willing to cover themselves. If the cost of replacing whatever you lost falls within this amount, they then generally suggest you do not file a claim. 4. How will filing this claim impact your risk management strategy going forward? Someone who files too many run-of-the-mill claims risks being deemed by insurance carriers as “no longer profitable.” In the end, carriers are businesses that need to earn money to ensure that they can pay out claims while being financially successful, and that has become increasingly difficult to achieve as weather-related events have increased in frequency and severity as well as costs of replacement and reinsurance have risen. Additionally, construction (material and labor) and auto repair costs continue to increase. So, when it comes time to renew, they are paying more attention to claims histories, especially for water damage and auto accidents. That’s all the more reason we might recommend you handle whatever you can on your own, thus preserving your insurance for catastrophic losses. 5. Is there any reason for you to choose not to file this claim? No doubt it is frustrating to pay for insurance and then choose not to use it for a covered claim. However, after our discussion, you may decide that it’s not worth filing the claim as it could impact your future insurability and once you lose coverage it is very hard and expensive to get it back. If that’s the case, we will recommend other adjustments that may help lower your premiums, such as increasing deductibles or assessing exposures and coverage to make sure you are paying only for what you need. 6. Can we help you be even more proactive about preventing future losses? As you no doubt know, an ounce of prevention can save you thousands in repairs. This is why we regularly educate our client’s around proper maintenance. It’s crucial for you or your caretaker to do things like caulk around windows, clear drains and gutters of debris and check that the sump pump is operational. Taking the time to walk around your home and find the spots where a small investment will prevent a loss that in turn will save you money and effort in the future. And we are happy to provide further guidance and best practices if there is anything we can do to help in this process. Our primary goal is always to protect you and your family's long-term interests. This is why we will work together to guide and advocate for you throughout the claims process. And it’s why we hope your first step will be a call to our team and not the carrier. We can advise on the steps required to handle your immediate loss and keep you insured long-term, as we have done for clients for more than a century. ...

More info
Family with teen talking on patio - Alliant Private Client

It’s never too early to talk about risk with your children

Parents understand the importance of teaching their children essential life skills, from safe driving to financial literacy, but many might not think to include crucial lessons around risk management. Yes, you counsel to look both ways before crossing a street and to be wary of strangers, but how about conversations around the potential liability and repercussions with certain behaviors and actions? As risk management experts, we think a lot about how best to educate the next generation about these topics and regularly help families do just that. To encourage you to do the same, we have provided some ways to help you educate your children about risk management. Educating Tweens & Teenagers about Risk Management It is never too early to make kids aware of the fact that their actions can impact the entire family—both your assets and reputation. But this age range is when their choices begin to matter. To that end, you want children this age to: Understand the perils of social media The majority of American children are already carrying smartphones by the time they are 11, and kids even younger use social media. New phone or new account, this access is best ushered in with a conversation about the consequences of posting something defamatory or bullying by text. Helping your kids understand that nothing they put or send online is private, and that unfortunately, you can be held responsible for all of it. (This article details why it’s important for the whole family to be careful with social media.) Avoid throwing out-of-control parties When kids hold parties while parents are away, they most likely don’t know that their parents could still be held responsible if something goes awry. That’s why it’s important to tell your children about “social host laws,” which hold the entire family responsible for incidents involving drugs and alcohol at their home, even if the parents were unaware. We also recommend you warn children against drinking games because if someone gets injured or dies from alcohol poisoning, a court could find they encouraged risky behaviors. (Here are some suggestions on how to mitigate the risks of teen drinking.) Practice defensive driving The day your child gets their learner’s permit is the day you should start accentuating the perils of driving, and, in particular, driving while under the influence. But you also need to teach them how to act in the event of an accident, even a minor one. For example, even a casual “sorry” could be seen as an acknowledgment of fault, or an admission like, “I wasn’t paying attention.” (See this article for more tips post-accident.) Educating College Students about Risk Management They may still be in school, but your child is technically no longer a minor. And that means their actions can have more significant consequences. As such, your college-aged child needs to: Understand that they are now more responsible for their actions Up until now, you have likely had ultimate responsibility in most situations but now is when you can help with the transition. For example, educating your children to report any broken items in their “new” residence in a timely manner will minimize their risk of having to pay for any of these damages. Remind them that though the car they are driving is registered in your name, they still will be implicated if anything goes wrong while they are behind the wheel. And alert them to the aforementioned risks of hosting a party, particularly those connected with underage drinking. Understand that their family may still be liable for what they do Though your college student may be away from home, as long as they remain your dependent you remain accountable for their actions. This liability extends beyond the obligations that come with signing or co-signing a lease. (In fact, parents might be liable even if it is only the child’s name on the lease, should a court determine them to be in your custody.) Parents have also been held responsible for their children’s involvement in harmful, or hazing incidents. Be especially careful when studying abroad For many students, a semester abroad is a rite of passage. To help ensure it is a wonderful experience, we recommend making a copy of all important documents to ease replacement in the event they are lost or stolen and providing your child with a list of local contacts—family as well as school administrators—who can act as local advocates in the event of an emergency. Also, it’s worth reminding them to always follow local protocols and laws. Your children are fortunate to have parents who are concerned about their ongoing welfare and willing to be engaged in helping them navigate risks. As they say, it takes a village, so as always, we are available to assist in this education process at any stage of your child’s life. ...

More info
Couple hiking overlooking community

The impact of natural disasters on the insurance industry

With predictions of another season of significant weather events in the air, it’s important for us to give you an update on the current insurance landscape. The insurance industry is constantly evolving due to many factors and our goal is to keep you fully informed so you can better understand what is happening, why, and what you can do to mitigate the impact on your insurance program. The insurance industry is in the midst of a correction that largely began in California a few years ago and continues to spread across the country, particularly to regions most susceptible to wildfires, hurricanes, and other catastrophic climate events. Despite this, Americans continue to move into these areas, and that has put a serious strain on insurance carriers, which, in turn, is increasingly impacting even less-vulnerable areas. In the past five years, the U.S. has experienced 89 weather-related events that caused at least $1 billion in damage, and that trend is not abating. In 2022 there were 18 separate billion-dollar events making it the third most costly year on record for hurricanes, freezes, severe storms, wildfires, and floods. Floods, in fact, are the country’s most frequent and costliest natural disaster, now occurring often in areas not previously considered to be high-hazard ones. All of which means premiums continue to climb higher, non-renewals are more common than ever, and it is increasingly difficult to obtain coverage, wherever you live across the country. This is no doubt, frustrating news to clients but does have a silver lining: Several years of navigating this market has made our team extremely well equipped to guide you through its challenges and find creative solutions best fit for your unique needs. Three factors driving the market correction Insurance carriers engage in a constant struggle to sustain an economic model that allows them to pay the broadest number of claims. This moment in time remains a particularly tricky one for them because … 1. Capacity is low. Today’s carriers are significantly overexposed after decades of securing increasingly expensive homes in areas that have borne catastrophic losses from weather events. Even premiums that may seem unreasonably high to individual policyholders do not sufficiently cover carriers’ aggregate risk. Not only has this overexposure made carriers tighter with rates, but it has also made them more likely to refuse coverage altogether. This is the case in affected and unaffected areas alike, especially for owners of older homes that are not fitted with the latest protections or do not meet current building codes. A similar reluctance is occurring in areas like New York City, where aging infrastructure makes carriers wary. 2. Reinsurance costs are high. If carriers were left to pay off losses solely with the money they took in from premiums, insurance would be unsustainably expensive. That’s why they support their own exposure with reinsurance, essentially, coverage for losses they can’t cover on their own. Reinsurance guarantees carriers have enough cash no matter the cost of a loss. That said, the current combination of increased catastrophic events and heavier concentrations of multi-million-dollar homes in vulnerable areas impacts both insurance and reinsurance carriers. In fact, so drastically, reinsurance is now much costlier than before. When those rates rise, it makes it that much more complicated and expensive for carriers to provide adequate coverage for clients. There comes a tipping point when reinsurance becomes just too costly, especially government-regulated ones that are required to carry a certain surplus. 3. Inflation is making everything worse. The cost of replacing almost everything is significantly higher these days. Labor and materials are at sky-high prices because of ongoing supply-chain issues and skilled-worker shortages. Vehicle repair costs, to take one example, have risen steadily, and faster, in the past two years. The latest premium appliances may be more technologically advanced, but that also makes them more expensive. Much more basic materials such as paint, lumber, roofing and plumbing are pricier, too. And these costs continue to climb higher after a catastrophic event which puts pressure on available resources. Smart risk management strategies We continue to provide innovative solutions to help protect you and your belongings. But we also want to put you in the best possible position to ride out these challenging times. Specifically, we recommend that you… Do everything in your power to avoid a loss. Yes, accidents and climate events will unfortunately happen, but you can better prepare your home and property for both. Simple pre-emptive steps such as creating a brush-clearance zone in a wildfire-prone area or undergoing a windstorm mitigation inspection in storm-heavy areas are crucial. We can also help you schedule walk-throughs with professionals, who will spot potential trouble areas and recommend preventative measures. Likewise, we encourage you to embrace the available technology to minimize the likelihood of water loss or wind damage such as water leak detection devices and more. Protect your insurance coverage. A history of previous claims, even a short one, is often a strong predictor of premium hikes and non-renewals. It can also make it more difficult to secure new coverage. Thus, we encourage you to speak with your insurance professional prior to making any potential claim, so we can help you decide how best to proceed. (In some cases, that means taking on the expense yourself if possible.) Choose coverage strategically. If, as we suggest, you plan to file claims only in the most onerous scenarios, you can lower premiums by choosing higher deductibles. Other situations may call for you to self-insure or partially insure. For example, if your home has the best-possible wind protection and you do not carry a mortgage, foregoing wind coverage to make the premiums more reasonable might be a viable option. Contact us before signing a contract on a home: If you are considering buying in a risky geographic area, your broker can tell you if you will be able to purchase coverage—and whether the cost will be prohibitive. We understand that this is an extremely challenging market, but we are confident that we can help guide you to make it more manageable. If you have any questions about the current state of the market or whether your personal portfolio is adequately protected, please know we are always here to help guide you and your family.   ...

More info
More articles and resources