BULLETIN
December 6, 2021
Western National Association Deductible Coverage and Equipment Breakdown Rate Revision
Regular review of our homeowner pricing has resulted in minor adjustments to several rating factors across all homeowner policy forms. Increases and decreases in rate will vary based on each policyholder’s unique mix of exposures. Analysis of loss cost trends by coverage has identified two coverages where a significant increase in rate is needed.
Loss Assessment Coverage – Over the past few years, we’ve seen a dramatic increase in loss frequency and severity from homeowner associations assessing their deductibles for weather-related losses to our unit owner policyholders. As a result of this trend, we have increased the rate we charge for Loss Assessment coverage. Unit owners in our Form 6 Standard and Form 6 Preferred policies will see an average renewal premium increase of 16%.
Equipment Breakdown Coverage - The annual cost for Equipment Breakdown coverage has changed from $28 to $50. This change reflects the indicated rate need based on historic loss costs.
These changes were effective beginning with October 1, 2021 renewals. We apologize for not communicating this earlier. Please feel free to reach out to your Personal Lines Underwriter or Regional Agency Manager with any questions you may have.
