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Guest Blog:

Hidden Costs of Property and Casualty Insurance

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Written By: Brandy Enger, Director of Personal Lines & Risk Management – Vizance 

In recent years, the insurance industry has been undergoing a significant shift known as market hardening which has especially impacted personal insurance consumers. A hard market refers to a period when insurance premiums rise, and underwriting standards become narrower due to a variety of environmental, social and economic considerations.

The hardening insurance market can be attributed to a few factors. Increases in auto-related thefts, inattentive driving, and rampant claims fraud are increasing claims costs for insurance companies beyond their traditional trends. Add in extreme weather, population migration to costal states, inflation and increased labor costs, and you have major underwriting losses and decreases in profit margins. As a result, insurers are pushing through higher-than-normal premium increases in order to return to profitability and ensure long-term sustainability.

In a hard market, insurers also become more cautious about the risks they are willing to take on. This leads to stricter underwriting standards and a greater emphasis on risk assessment, resulting in a challenging dynamic for most policyholders. Today, we see this not only in terms of increased premium costs but also with limited loss settlement terms and reduced coverage options. Clients with good driving habits, proactive property maintenance and a willingness to retain certain losses will likely experience a less-significant impact than those with imperfect pasts.

In Wisconsin, while we’re not facing a dire insurance situation like Florida or California, we are seeing policies being issued with heightened premium costs, increased wind/hail deductibles and home maintenance requirements (i.e. mandatory roof updates, water shutoff devices and unfavorable terms for clients with prior claims).

Speaking of Florida, if you’re considering purchasing property there, it’s important to factor insurance costs and availability into your decision-making process. Florida’s unique climate and geographical features make insurance considerations particularly important, especially when it comes to protecting your property from natural disasters such as hurricanes and floods. Here are some essential tips to help you secure the best insurance terms for your Florida property and avoid hidden costs:

– Prioritize Newer Construction and Roofing

– Conduct Location and Flood Zone Checks

– Obtain an Inspection

– Invest in Protective Measures

– Check Property Loss History

– Avoid Short-Term Rental Exposure

Regardless of what state you call home, we strongly recommend you take extra time this year to review your insurance program to ensure you have full understanding of how your policy has changed because of this challenging market. It’s also a great time to reach out to your personal insurance advisor for guidance and assistance in navigating these changes. At Vizance, we welcome these conversations and look forward to showcasing our talents as true industry experts.

Read more about the challenging Florida market:


Vizance is a privately held independent insurance agency offering a broad portfolio of insurance and risk management solutions for individuals and businesses. Since their founding in 1978, they have seen significant growth, particularly in the personal insurance space. This is attributed, in part, to their consultative approach to insurance, as well as their unique ability to provide custom-tailored solutions to their clients.