Three Important Factors About Your 2023 Martha’s Vineyard Home Insurance.

There is turmoil affecting the property insurance industry. Consumers, insurance agents and brokers are feeling the pain as the industry experiences unprecedented changes.

Here are three ways Martha’s Vineyard property owners are being impacted in 2023.

1. Steep price increases.

   Many homeowners on Martha’s Vineyard are experiencing dramatic premium increases.  Insurance Business America states that falling investment returns for insurers, increases in the frequency and severity of losses, and regulatory intervention deemed contrary to the interests of insurers are driving up the cost of policies. The coastal nature of the Cape and Islands region places property at a higher risk for losses from storm-related disasters, resulting in higher premiums.

2. Less options with less coverage.

   Insurance companies nationwide are facing insolvency and pulling out of large areas. Others continuing to operate in these regions are tightening their underwriting guidelines to limit their exposure in high-risk zones. As an independent agency focused exclusively on Martha’s Vineyard, we are noticing that Lloyds of London is nearing or has reached its capacity with most brokers in the area. You may be seeing new carriers with less coverage as a result. This makes it more important than ever to review your policy with your agent. 

3. A changing climate is impacting your insurance.

   The Insurance Journal reported that “Reinsurers are reacting to five years of (excessive) catastrophe losses and growing worries that climate change is intensifying the risks from storm and wildfires.” Cape Cod was struck by tornadoes in 2019 and Martha’s Vineyard narrowly missed being hit by one in 2021. We live in a beautiful but risky coastal area with high property values; insurers are looking to reduce their hazard exposure before a catastrophic loss occurs.

What does all of this mean for your Martha’s Vineyard home or property insurance?

Your homeowner policy on Martha’s Vineyard will likely increase in price with a potential reduction in coverage. Having an independent agent dedicated to insuring properties on Martha's Vineyard is more critical than ever. 

Take time to review your policy coverage with your agent. Know what’s covered and to what amount. Inflation and supply chain issues have increased the cost of construction significantly. Consider increasing the coverage to rebuild your home in the event of a covered loss. What was sufficient 5 years ago may no longer be adequate in the current economy. 

As the insurance market shifts, new opportunities arise. Switching from a non-admitted, non state- supported carrier like Lloyds of London to an admitted carrier supported by the state may be the best option. The price gap between non-admitted and admitted policies has narrowed. While a non-admitted carrier may have saved you money in the past, this may no longer be the case.

At Sterling Insurance Group we have worked diligently to curate a portfolio of carriers that are an excellent fit for the combination of high property values and coastal risks found on Martha’s Vineyard. Many of these carriers are exclusive to our agency. 

If you are already a client, rest assured that we are looking carefully at all of our renewals and considering the best options for you. If you’re not yet a client, reach out directly or visit www.insurewithsterling.com to fill out our quote questionnaire and we will get started working on your behalf.