Senior homeowners, new homeowners and homeowners with newer homes could see insurance rate discounts upon policy renewals thanks to a homeowners’ insurance filing that recently was approved by Nevada Insurance Commissioner Scott J. Kipper.

Commissioner Kipper has approved a homeowners’ insurance filing as filed by American Family Mutual Casualty Company to become effective on March 20, 2009 for new and renewal business. Via this filing, American Family is introducing four new discounts for homeowners, tenants and condominium owners. These discounts are:

• A discount for policyholders age 50 and older for owners and renters, and age 60 and older for condominium owners.
• A multi-policy discount for policyholders who also have an umbrella policy with American Family.
• An age-of-home discount for new applicants if the age of their homes is not more than 5 years. This discount is applicable only to homeowners, and not to renters or condominium owners.
• A discount for a new home purchase applicable for up to 2 years.

As the third-largest homeowners’ insurer in the state, American Family Mutual Casualty Company provides homeowners’, renters’ and condominium owners’ coverage for approximately 52,182 Nevada policyholders.

Commissioner Kipper said that the introduction of the new discounts will help lower the insurance rates for senior homeowners, new homeowners, and homeowners with newer homes, since new homes present a lower level of risk in Nevada. With regards to the multi-policy discount, Commissioner Kipper stated that generally, Nevada consumers can lower their homeowners’ insurance premiums by having multiple policies with the same insurer. The discounts based upon the age of customers are supported by credible countrywide actuarial data furnished by American Family in support of this discount, he said.

To offset the negative premium impact from these discounts, there will be a modest increase in American Family’s base rates for homeowners’, renters’, and condominium owners’ insurance. The net effect of the discounts and base rate increase will result in a premium decrease for about a third of American Family policyholders, no premium change for about 9 percent of policyholders and a premium increase of not more than 3.4 percent for the rest of the policyholders. An average policy experiencing a +3.4 percent increase will see an increase of about $22 for the policy term. These changes translate into an overall statewide average rate change of 0.0 percent and are revenue neutral.

The last two Nevada rate changes for American Family policyholders were a minus 8.5 percent statewide average decrease in 2007 followed by a 0.0 percent statewide average change in 2008.