Happy New Year! I hope your holiday season was filled with joy, and that 2025 is off to a fantastic start for you and your family. As we begin this new year, I wanted to take a moment to reflect on the insurance industry’s developments in 2024 and provide some insights into what we might expect in the year ahead. Additionally, I’d like to share some important tips to help Wisconsin residents protect their homes and businesses from the challenges that extreme cold weather can bring.
The past year marked a period of change and adjustment within the insurance industry. Following significant losses in 2022 and 2023, carriers implemented sweeping changes to stabilize their finances and improve profitability. Many of these adjustments were centered on wind and hail coverage, with a particular focus on aging roofs. Carriers tightened their underwriting guidelines, often limiting new policies to homes with roofs under ten years old.
Rate increases in the 20-30% range were common as insurers worked to recover from prior losses. These adjustments take time to fully implement—often 12 to 18 months—due to the regulatory process and the nature of policy renewals. As such, the true impact of these changes won’t be fully realized until mid-2025, when most policies will have transitioned to the new terms.
Looking ahead, there’s reason for cautious optimism. Assuming we experience a quieter storm season, we anticipate rates will begin to level off, with renewal increases in the more modest 0-10% range. This would also likely bring greater market capacity and more competitive options for policyholders.
That said, challenges remain. Rising liability claims and what the industry refers to as “nuclear verdicts” (exceptionally large payouts in lawsuits) are adding upward pressure on premiums. However, we’re hopeful that as rate increases are fully earned and product changes take effect, the insurance market will stabilize by the end of the year, paving the way for more consistency and predictability for policyholders in 2026.
While we look forward to a more stable market, the immediate challenge for many Wisconsin residents is the bitter cold of winter. Frozen pipes are a common concern during this season, and they can cause significant damage to homes and businesses. Taking a few preventive steps can make all the difference in avoiding costly repairs and disruptions.
If pipes do freeze, turn off the water supply and carefully thaw the affected areas. In many cases, consulting a professional is the safest option.
As we face 2025, our team at Lindow Insurance is here to help you navigate the challenges ahead. Whether it’s guiding you through market changes or providing tips to safeguard your property, our mission remains the same: to give you peace of mind and protect what matters most.
From all of us at Lindow Insurance, thank you for trusting us to protect your family, home, and business. We look forward to another year of serving you and wish you a warm, safe, and successful 2025.
Need to discuss anything? Contact us today!
Warm regards,
Jon Oaks
PresidentAmerican Advantage Lindow Insurance
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