BULLETIN
February 21, 2023
Western National Insurance Home Rate Revision (South Dakota) - Eff. 4-1-2023
Western National, like most home insurance carriers, continues to be impacted by widely reported economic and environmental factors that have caused significant increases in the average cost of claims for our policyholders, including inflation, supply chain issues, labor shortages, and the frequency and severity of storms. The reinsurance market has also been impacted, causing our costs to increase as availability of reinsurance has decreased. The combination of these factors make it necessary for us to take more significant rate action than is typical.
Effective April 1, 2023, home rates will increase 9.5% overall. The exact impact of rate increases will vary based on the specific characteristics of the insured exposure. Policyholders with lower wind/hail deductibles will see the greatest increase in the premium they are charged (potentially well above 10%). In addition, we have increased our automatic annual Dwelling Coverage increase to ensure limits accurately reflect increased rebuilding costs. The average increase in Coverage A is 7%.
We understand premium increases can be a hardship for our policyholders, but there are options to mitigate these increases. Policyholders can reduce their annual premium by increasing deductibles, and we’ve made this even more appealing by deepening the discount on our higher wind/hail deductible options. As an example: premium could be offset by as much as 15% when increasing a $1,000 deductible by adding a $2,000 wind/hail deductible.
Please contact your Personal Lines Underwriter or your Regional Agency Manager with any questions.
Thank you for your continued partnership!
