Throughout the past three years, we have experienced significant catastrophe (CAT) related loss activity in Ohio related to our property lines of business.  In fact, $9.1 million in incurred loss activity has resulted from weather losses alone. 

With this weather challenge in mind, we are taking steps to better manage our Dwelling Fire line of business while improving your profitability and ours.   The following changes will become effective March 1, 2014: 

•       Mandatory Wind / Hail Deductible:  A minimum Windstorm or Hail Deductible of $2,000 is mandatory for all forms.  Higher deductible options are available as a percentage of the Building Amount or a flat dollar amount.  The percentage options available are 1%, 2%, 5%, 7.5% or 10%.  The flat dollar amounts available are $2,000 (minimum), $2,500, $5,000, $7,500 or $10,000.  The Windstorm or Hail Deductible must always be equal to or higher than $2,000. 
•       Base Rate Change:  A base rate change of 2% is being taken.   
•       Dwelling Fire Rule:  For dwellings under construction, coverage can only be written when the Named Insured is the intended occupant of the dwelling. 

If you have any questions related to this change, please contact your Personal Lines Field Manager, Randy Pillen, respective underwriter, or me.

Thanks for your continued support of Frankenmuth Insurance.