Hi,

Can any of you insurance gurus tell me what EXACTLY what an Application for Property Insurance Consent to Rate is?

Can they drop me if I don't sign and agree to the MASSIVE increase?

Is this a normal or am I getting hood winked?

What is my next step?

Please advice asap

No, you aren't being hoodwinked. Yes, they can drop you if you don't sign it. Yes, consent to rates are very common in the insurance industry. They are used in many different types of situations, but are the government sanctioned way to charge more than the state rate at that time. Often times a consent to rate is due to a higher risk. A lot of consent to rates in the past couple of years have been due to credit scores. You can ask your agent the exact reason for your consent to rate. I know one company who is requiring CTRs for more of its property customers than not because of the credit standard they are now applying.

Right now, there is a TON of consent to rate going on in property insurance. I can tell you that some very good carriers are raising rates in an effort to have enough money to pay future claims based on current judicial rulings on what they might have to pay.

You can go somewhere else with your insurance. However, I will say that many times, your rate will end up being raised by that company soon there after. Sometimes in insurance, the companies play the game of "who is going to raise the rates first" and the ones who wait try to pull in all the business they can before they have to follow suit.

A good agent will talk to you about ways to get your rate down despite the required CTR. Higher deductible, lower limits, etc.