Sandy Shouldn`t Affect ND Insurance Rates | VideoKristin Clouston | 11/6/2012
State Insurance Commissioner Adam Hamm says he doesn`t expect Sandy to affect our rates.
"That`s because companies primarily use North Dakota data when they`re developing the rates. If they want to incorporate country-wide experiences they`re good about pulling out that data, hurricanes and catastrophes we don`t see in North Dakota. And if they don`t pull them out we tell them to," he said.
People living near hurricane prone areas are also already paying to help cover these costs.
"For a national company that would write in both North Dakota and Florida their premium in Florida would be much higher than in North Dakota," said Farmers Insurance agent Jed Geer.
State insurance commissions also work as a check and balance for the industry.
"Companies trying to get certain rate increases can only get them to a certain level without getting prior approval from the insurance department," Hamm said.
He says we can all learn a lesson from Sandy. and shouldn`t wait until a disaster happens to find out what our insurance covers.
"Get that policy out. Talk to your agent. Find out what you have, how much you have and if a disaster happens, you know you`re covered at least and don`t have to worry about that as you have to go through all the things you have to do to get your lives back together."
He says it usually takes at least a year after a disaster before homeowners would see a rate increase in their policies.
Hamm says over the past two to three years, rates in North Dakota have gone up between five and ten percent.