2012 Insurance rates rise after natural disasters

One year ago deadly tornadoes ripped through the southeast,  in Georgia alone, the storms cost insurance agencies and consumers hundreds of millions of dollars.

Ralph Hudgens, State Insurance and Fire Safety Commissioner says, "The Insured losses that were filed were over 400 million dollars."

Hudgens says that led insurance companies to request rate hikes.  The state approved across the board increases of up to 9.6% for insurance premiums.

Lydia Livingston an Agent of Doherty, Duggan, and Rouse Insurer says, "Natural disasters will have an affect on rates because of the number of claims." 

Ralph Hudgens says, "If they cant make a profit they are going to do like any other business: go out of business."

But agencies are urging consumers not to drop their insurance due to the increase, and they say increases this year are not directly related to last year's storms.

David Colmans, Executive Director Georgia Insurance Information Service says, 'Many people think because there was a tornado last year it affects rates this year, but that's not the way it works." 

Colmans says it could take years for the rates to be affected by the 2011 tornadoes.

Colmans says, "It may take two or three years before the increases, if any, are seen from these particular."

Livingston says that in her 28 years in the industry, Albany has never seen rates so high.

"Most of the carriers, and the rate carriers of Georgia especially in our area, are seeing rate increases."

But Insurance officials assure the public that they are working to keep rates at a reasonable price..

"Of course anytime any of our prices go up it affects us all,"says Hudgens.

But the increase is nothing compared to the amount paid without home insurance.