Kansas insurers say regional rates still low

Property insurance companies in Kansas say rates remain low in the area despite a slew of natural disasters that have affected risk models across the world.

An earthquake and tsunami devastated Japan while tornadoes and severe storms thrashed the U.S. Midwest and South. In addition, severe floods have threatened homes from North Dakota to Tennessee, but all the while homeowners insurance rates remain fairly low and should remain that way for the rest of 2011, reported the Wichita Eagle. Commercial insurance rates are particularly affordable, said the report, meaning businesses could insure their property for a low rate.

Experts told the source insurance rates typically change on a lag of a few years, since they're determined using long-term averages. Pricing, therefore, isn't likely to change unless severe weather continues over the next few years.

"For the last three years or so we have gone through a time where there hasn't been a lot of natural disasters," Kurt Watson, chief operating officer of IMA Financial, told the paper. "[But] let's say if there was a continuation of the unsettled weather we've had ... followed by a very difficult hurricane season, then, maybe pricing would be impacted."

Even hard-hit areas report little change for homeowners insurance rates in the immediate future. Insurance officials in North Carolina told the McClatchy News Service the tornadoes that ravaged the state last month won't lead to a severe increase in prices.
 

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