Homeowners insurance prices are skyrocketing (with Tim Molgren)

Structure Talk

In this episode, Reuben and Tessa are joined by Tim Molgren from Woodlands Insurance Group focuses on the insurance problems in Minnesota and the changes happening in the industry. The main topics discussed include the increase in insurance premiums due to severe weather events and rising construction costs, the introduction of four-point inspections in Minnesota, the difference between replacement value and actual cash value in insurance coverage, the challenges insurance companies face in changing their rates, and the trends in insurance coverage in other states with high storm activity. The conversation discusses homeowners' challenges in getting insurance coverage for their roofs, especially in areas prone to hail damage. The hosts express frustration with the current system, where some roofers push for unnecessary roof replacements to profit from insurance claims. They highlight the waste and cost associated with replacing roofs with a significant lifespan. The conversation also touches on the future of insurance coverage and the potential impact on homebuyers, particularly those purchasing older homes with outdated systems. The hosts emphasize the importance of having conversations with insurance agents to stay informed about policy changes and to ensure adequate coverage.
Takeaways
Insurance premiums in Minnesota have significantly increased due to severe weather events and rising construction costs.
Four-point inspections are becoming more common in Minnesota as insurance companies tighten their requirements for coverage.
Replacement value coverage in insurance policies allows for the full cost of rebuilding a home, while actual cash value coverage only provides the value of the home at the time of the claim.
Insurance companies face challenges in changing their rates due to regulatory processes and red tape.
Other states with high storm activity, such as Florida, have experienced similar insurance challenges, including limited coverage options and higher premiums.
Insurance carriers may implement roof schedules, higher deductibles, and other measures to mitigate their losses and control premiums in the future. Some roofers push for unnecessary roof replacements to profit from insurance claims, leading to waste and unnecessary costs.
Homeowners should consider the lifespan of their roofs and the extent of damage before filing insurance claims.
Insurance coverage for older homes with outdated systems may become more challenging to obtain.
Homebuyers should budget for potential changes in insurance premiums and down payments when purchasing older homes.
Having conversations with insurance agents is crucial to stay informed about policy changes and ensure adequate coverage.

Chapters
00:00 Introduction and Catching Up
03:00 Insurance Problems in Minnesota
10:33 Minnesota's Weather-Related Claims
14:59 Replacement Value vs. Actual Cash Value
19:20 Challenges in Changing Insurance Rates
23:48 Insurance Trends in States with Storm Activity
27:24 Mitigating Losses and Future Premiums
28:56 Unnecessary Roof Replacements
32:15 The Future of Insurance Coverage
34:46 Challenges for Homeowners
38:46 Financing Options for Roofs
45:09 The Impact on Homebuyers
50:38 The Role of City Inspectors
51:33 Importance of Conversations with Insurance Agents