Insurance rates rise as yields fall

We provide inventory services, and one of the main reasons to have an inventory of the contents of your home or business is to maximize an insurance claim when you experience a theft, fire or natural disaster. Insurance and inventories are closely related, so I try to stay up to date on significant property and casualty (P&C) insurance issues. In a series of posts recently, I provided a list of quick and easy ways to save money on your homeowners policy.

It appears my timing was perfect, according to a Bloomberg article by Andrew Frye. Lloyd's of London predicts that insurance rates will rise in 2009, led by higher rates for protection against windstorms. The insurance industry experienced falling investment returns and higher claims in 2008. Lloyd's stated that profits declined by 51%.

So, if you didn't read the money-saving tips, this would be a good time to do so. And remember that one of the best money-saving things you can do is have an inventory. If you have to file a claim, you'll need a detailed list of each item that needs replaced. Would you be able to create a thorough list?