CFM Underwriting Changes
Effective July 1
Starting January 1 of this year, we introduced numerous adjustments to our underwriting guidelines and rates for our products. This initiative aimed to recover from the extensive storm activity in 2023, which led to $70 million in paid claims. With the ongoing high frequency of storms and soaring building material expenses, 2024 seems poised to parallel the challenges of the previous year.
As a result, we will be implementing the following adjustments to policy types and rates, effective July 1.
Homestead Exclusive & Countryside Exclusive: These policy types will be renewed on the Homestead and Countryside policy type rate set. This will result in higher-than-average rate increases for these policies.
Renters Products: Our replacement cost rental program base rates will increase 15% overall. The policy types affected are: Landlord’s Rental – 3 & 4 Family Dwellings – Form 2; Landlord’s Rental – 3 & 4 Family Dwellings – Form 3; Single Family or Duplex Rental – Form 2; Single Family or Duplex Rental – Form 3
Personal Auto: We will implement a 15% average rate increase on 7/1/24 for new business and on 8/15/24 for renewals. This increase will focus on model year and symbol factor updates.
Here are a few ways to combat the rate increase for those policies:
- Select a different policy type: We offer many types of coverages and policy types for our agents and policyholders to select from. Choices are good. We have seen many of our policyholders move to a more affordable policy type that meets their needs and personal budget.
- Raise the deductible: The baseline deductible for all replacement-cost homeowner policies is now $2,500. Higher deductibles result in higher policy credits, reducing renewal premiums.
- Review the limits: Analyzing all limit amounts within Coverage A, B, C, & D could make a difference. Please contact your Underwriter to make this change.
- CFM’s discounts: CFM offers a wide range of discounts that benefit the policyholder and can decrease the premium. Those discounts are listed on CFM’s website.
Why is CFM making this policy type change?
- Weather patterns: 2024 continues to see extreme weather activity with high spikes in frequency and severity with events that have occurred this year.
- Continued high cost of repairs: 2024 claim costs continue to increase for weather-related losses. With continued extreme claim costs, replacement cost policies must stay price adequate with premiums to allow for repairs.
As we program these changes into our system, quotes with an effective date of July 1, 2024, or later will be impacted by them. Please reach out to our experienced CFM Underwriting team with any questions.
Click here for a complete list of changes approved by our board.
As an agent with the CFM Insurance family, we appreciate the trust and confidence you place in us year after year to protect your customers, and we look forward to doing so for many, many years to come.
