Arkansas Homeowners Rate Change coming March 2019
United Home is committed to providing a competitive, stable home product to meet customer needs while ensuring the product is positioned for long-term growth and profitability. To keep United Home on its continued profitable growth in Arkansas, we need to implement a modest rate change and make a few program modifications.
Rate Impact and Highlights
-Base Rates overall increased by +1.0%.
-Average home new business rate increase: +2.6%
-Average home renewal business rate increase: -5% to +12% (overall average of $25 annually, or $2 monthly)
We are changing base rates and introducing new territory factors in loss affected zip codes to reflect recent Arkansas weather pattern/loss cost changes.
Discounts being modified & increased:
– Increase in new home discounts on new construction to homes less than 10 years old
– Coverage A factors are decreasing an average of -2.5% in homes valued between $250,000-$500,000.
– Increase of companion auto discount by 5%.
-The cumulative impact of pricing changes can be very disruptive to our customers. UHIC understands that, and stabilizes rates to decrease pricing changes year to year to enhance the overall customer and agency experience.
-The impacts shown in this email memo are specifically tied to this rate change and does not account for exposure changes such as changing Coverage A limits, aging homes, loss of account credit, etc.