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Insurance expert answers your questions | 2 Wants to Know

Supply chain issues and inflation led to rate increases for both auto and homeowners insurance in June.

GREENSBORO, N.C. — You should have noticed an increase on your insurance rates this June. The NC Insurance Commissioner approved an average of 7.9% increase for auto and homeowners' insurance policies to combat inflation.

That's not the only increase you'll see. Due to supply chain issues and rising inflation, the cost to rebuild your house has increased, which means you need more insurance to cover your house.

We talked with Christopher Cook from Alliance Insurance Services, answering your questions about insurance, and why you pay what you do.

Here are your top questions answered:

Q: An accident happened that wasn't my fault. Why am I paying more for my insurance?

A: Cook says an insurance company will say they didn't raise your rates. What they do is take away your incident-free discount. "Still feels like a raise in the rates to you, and I understand that," said Cook. "Unfortunately you've lost an incident-free discount and it makes you feel like your rates have went up and they certainly have.

Cook also says there's a statistic in insurance that has been proven over the last century, people who have not-at-fault accidents are more than likely to have an at-fault accident in the next five years.

Q: When is my home covered by flood insurance?

A: Cook says 'flood' is not water damage that came from the water inside your home. "Flood is a natural event caused by rain most likely in our area," said Cook. "The damage comes from outside your home, so the damage comes from outside your home. So the water seeps into or enters your home from the outside."

If a pipe spontaneously bursts in your home, or a pipe bursts outside your home and immediately causes damage, Cook says that should automatically be covered by your insurance.

Q: Should I have mortgage disability insurance?

A: Cook says you should have disability insurance. He says you're more likely to be injured and disabled before your working years are over than you are to die prematurely. "Should it be mortgage disability insurance? I don't think we have time to go down that rabbit hole," said Cook. "But I would say to folks, talk to a disability insurance agent and really understand the disability insurance product."

    

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