Some Property/Casualty Insurers Note Pattern Of Higher Fire Loss Claims In States With Above-Average Foreclosure Rates

InsuranceNewsNet.com reports:

• A pattern involving higher incidents of fire loss in states with above-average foreclosure rates has the attention of State Auto Financial Corp. Bob Restrepo, chairman, president and chief executive of the Columbus, Ohio-based property/casualty insurer, said the trend materialized last year and his company has taken steps in response.

• "We have an inspection program in place now for any homeowner who is behind on their mortgage by more than 150 days," Restrepo said. The purpose is to make sure any homes falling within that category are properly maintained and occupied. During a recent earnings call, Restrepo explained that State Auto Financial [] is taking appropriate underwriting action when warranted.

***

• State Farm has experienced an increase over the past couple of years in arson-related homeowners claims, according to company spokesman Dick Luedke. "While we don't have data that definitively proves it, we do attribute at least some of that increase to the proliferation of foreclosed upon homes in the U.S.," Luedke said in an e-mail.

For more, see Insurers Connect Rise in Home Fires to Financial Hardship.