HO468 1011.pdf

Please see below and attached concerning the new changes.

Basis Impact is:

- Base rate change average in state 2% increase (Note: Condo & Tenant went up about 5% - and dwellings only 2%)

- Rockwall county – decrease approximately 6%

- Webb County (Laredo) – decrease approximately 10%

Dear Agency Partner,

We wanted to give you advanced notice of upcoming changes in Texas.
1. New Texas Quantum® Rates
The Homeowners market in Texas has become more challenging in recent years, and as a result, Travelers is adjusting rates. The timing of these changes is:
  Effective 10/28/2011 for new business
  Effective 12/17/2011 for renewals
2. What is Changing?
  Improved base rates in two territories, due to improved loss ratios in these areas
  Increased dwelling, tenant, and condo base rates
  We are revising the HO-468 Foundation and Water Damage Coverage endorsement in Quantum to clarify the description of coverage.
  Policies that renew on and after October 23, 2011, that are effective on or after December 12, 2011 will receive a new HO-468 endorsement and Important Notice PL-15461 describing the change. This is just a language clarification, and will not affect customer premiums. If you would like to view these changes the endorsement can be referenced via Agent HQ:
  Agent HQ Personal Forms Policy Forms & Endorsements
3 Expected Impact to Your Customers
  The base rate changes will affect each customer’s premium differently, depending on individual policy characteristics.
Discussing renewal rate changes with customers
J.D. Power data shows that you can actually improve customer satisfaction and retention during a price increase by using these three steps:
  Call customers prior to a rate increase and discuss options
(e.g. deductibles, account rounding, payment options)
  Point out every discount they get, or could now receive
  Discuss the overall value of their coverage and service provided
Remember your customers can get an average discount of 21% by account rounding their mono-line home policies.
For questions please contact your Sales Executive. As always, thank you for your continued business and support.

Dennis Devlin
Regional Vice President


Susan Upshaw, CIC
Select Insurance Markets, LP.
(281)350-8366 Direct or 1-800-489-2501 X126 Toll Free
(713)204-0283 Cell
(281)651-1139 Fax

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