Times can be tough, even in a state of slow economic recovery, especially for homeowners across America. Right now, homeowners throughout California are complaining about the outrageous rates required by the forced homeowners’ insurance policies purchased by their mortgage lenders.
According to Insurance Commissioner Dave Jones of California, these policies are “at a price higher than insurance they could obtain themselves”. In response to this insurance crisis, Jones instructed the ten largest “lender coverage” providers in California to lower their rates for clients who have lapsed on their previous residential policies.
Subsequently, news of this demand caused insurance provider company, Assurant, Inc., to take a major free fall in the Standard & Poor’s 500 Index. This was the company’s biggest drop since January: Down $1.31, or 3.1 percent per share, to $40.85 at 4:15 p.m. on March 14th in New York. Their spokesman, Robert Byrd, commented on the subject of lowering rates with a statement saying, “As a regulated insurance provider in 50 states, we routinely work with regulatory authorities, and we look forward to continued discussions.”
So what does the future currently hold for homeowners? Well, Commissioner Jones gave the insurance companies until April 1st to come up with an official response to his firm request. Until then, the state took it upon itself to formulate a review of the insurance policies and found that, “loss ratios are low, which typically points to excessive premiums and is evidence to support complaints”. Meaning that there might be some hope for those unfortunate enough to be locked down under mortgage insurance policies.
The bright side is that if you are interested in finding homeowner’s insurance, then BMR Insurance Agency is here to help find you the perfect match. It is not just our duty to inform you of all upcoming deadlines, we pride ourselves on maintaining proper communication so that your insurance will never lapse.
Call us now on (714) 838-1911 for a free insurance makeover, or even stop on by. We’ve been at the same place on Newport Avenue for over 30 years and we love hosting our clients!