PEORIA MAGAZINE November 2023

A Washington resident looks over the devastation that destroyed homes on Sunday, Nov.17, 2013 (Photo by Ron Johnson)

rise because of inflation, it’s creating ratio situations that surpass 100%.” RESPONDING TO ‘UNPRECEDENTED TIMES’ Against that backdrop, Pekin Insur ance responded in early October to the reality of “unprecedented times” in the property insurance industry caused by “severe and erratic weather pat terns“ and inflation by accelerating its restructuring plan.

The company also is no longer offering insurance for condos and apartments in the Midwest, “which ... have high prop erty risk exposures to severe weather events.” “As the industry changes, so must Pekin Insurance,” said Dan Connell, board chairman, president and CEO of the company. “Focusing on our commercial and life insurance strategy will ensure our continued financial stability for now and many years to come.” In response to those moves, Pekin Insurance assured policy owners who are losing coverage that their agents will work with them if they wish to find a new insurance carrier, and said claims will be handled efficiently through the rest of their policy term. Mark Whitlock, a partner and agent with Summer & Associates in Washing ton, dealt with the insurance aftermath of the 2013 tornado that devastated Washington. Can he draw any parallels between that and what’s going on in the country today? “Short answer, no. They’re not the same and not related,” he said, adding that the insurance industry was pre pared to respond to damages from the Washington tornado.

“The long answer is the number of catastrophes, which includes things like wind and roof damage from hailstorms, is three times higher in the country over the last 18 months than what was expected,” Whitlock said. “The Midwest was especially pummeled during the first half of the year.” Whitlock has been in the insurance business since 2006. He said he’s never seen a time where the frequency and consistency of severe weather events has been so high. And that is impacting the cost of policies. “The days of $1,000 home insurance policies are over,” he said. “But there are better policies being written and if you approach looking for one with a plan, similar to a new business plan, you can take advantage of these policies.” The plan should include things like frequent maintenance and improve ments to your home. “Don’t give an agent reasons for de clining to insure you,” he said.

‘THE DAYS OF $1,000 HOUSE INSURANCE POLICIES ARE OVER’ — Mark Whitlock

The plan switches the company’s primary focus to commercial and life insurance, “where the impacts of environmental challenges are reduced,” according to a news release. Pekin Insurance announced that it’s temporarily not offering new home owners and personal auto policies in Illinois, Arizona, Indiana, Ohio and Wisconsin, and no longer offering new and renewal homeowners and personal auto policies in Iowa.

Steve Stein is a longtime Peoria area print journalist

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