Insurance rates could rise because of deconsolidation

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Updated: 4/21/2012 5:08 pm
RENO, Nev. (KRNV & MyNews4.com) – You could soon take a big hit to your pocketbook because of fire deconsolidation between the City of Reno and the County.
With more than four decades in the insurance business Gene Gardella addressed a joint meeting of the County and City this week to share the view of many agents that home insurance premiums will be going up because of slower response times under deconsolidation.

“The premium increases depending on how far they are from the fire department are going to end up being sustainably more,” he said.

He says anyone living more than three miles from a fire station would pay big bucks, up to $700 more a year.

During that same meeting, the new Truckee Meadows Fire Chief, Charles Moore, said he doesn't think deconsolidation will have an impact.

“My experience is that your insurance rates might go up, but I’m going to argue it's not likely a result of splitting the departments like what's being proposed,” Moore said.

According to him, companies use a lot more than just response times to determine rates.
He says one of the biggest factors is access to water.

Gardella though is sticking to his guns, but says they might not raise rates as high as that 700 amount if companies cover costs in another way.

“Another option that might happen is they say well instead of having this area go up, we'll just re-rate the City of Reno to a class five or six and everybody's premiums will go up between 50 and 100 bucks,” he said.
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Speed - 4/22/2012 11:25 AM
0 Votes
Interesting that they always seem to find a way to justify a rate increase. Why not leave insurance rates as is for a year and see how the deconsolidation affects the various ways the Insurance Co.'s decide their rates? Surveyed by an external resource,of course,to prevent a report "loaded" by either side.

sosumenow - 4/21/2012 8:28 PM
0 Votes
Slash and burn...slashing the budgets, will still burn the public.
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