Property Insurance Rates Unlikely To Rise After Record Rainfall
This week's record-breaking rainfall has left many fallen trees, leaking roofs and various other damages to homes and businesses across the Valley.
While that's been a boost in business for roofing companies and tree services, it also means big payout for insurance companies and therefore higher premiums for property owners making the claims.
But overall, it's unlikely that a freak storm such as this will cause property insurance rates to go up for everyone across the board, said Blake Johnson, an insurance broker and vice president of Minard-Ames Insurance Services LLC/INSURICA.
“The Southwest because, especially Arizona, is a very good place for insurance companies to write property insurance because these sort of things rarely ever happen and I think that they expect it to happen to some extent," Johnson said.
The same is true for flood insurance because those rates are set by the federal government. But many people in desert cities such as Phoenix don’t have flood insurance, which is a separate policy from property insurance, which is devastating on days such as this when much of the property damage is coming from water.