The cost of home insurance in Belize is expected to increase before the end of the year as several insurance agencies have already started informing customers of the coming increase.
The insurance premiums are set to increase following a series of natural disasters that ravaged the Caribbean last year. Due to the cost of damages taken on by the insurance industry as a result of the devastation caused by hurricanes in the region, the industry has decided on raising the cost of premiums to offset the losses.
Supervisor of Insurance, Alma Gomez, explained this week that it is expected that all insurance companies will raise the premiums for property insurance at some point within 2018.
Gomez noted that since each company does their own underwriting; they are free to decide when and at what percentage they will make the adjustments, as long as it remains within the scope of the law. The destruction caused by hurricanes Harvey, Irma and Maria resulted in untold damage to many Caribbean islands and saw millions of dollars in insurance payouts. The disasters also made the region riskier to ensure, which prompted the increase.
RF&G Insurance began circulating the news among its customers earlier this year that home premiums would go up by 5 percent. The Reporter reached out to other companies such as Atlantic Insurance and the Insurance Corporation of Belize; however, up to press time, those companies had not responded to our querries.
The expected rise in insurance premiums comes at a time when various goods and services including fuel, butane, food items, electricity, and potentially water rates are all going up.The Reporter