House of Straw House of Sticks House of Bricks
All three without a roof?
Extreme weather events are no longer a rarity. From hurricanes battering coasts to wildfires raging across forests, these disasters are becoming more frequent and intense. This has a direct impact on homeowners insurance, causing costs to surge and, in some cases, leading insurers to pull out of high-risk areas altogether.
Here's how extreme weather is shaking up the home insurance landscape:
Policy Cancellations and Non-Renewals: In some cases, the risk becomes too high for insurers to justify offering coverage at all. This is particularly true in regions prone to wildfires or hurricanes. Homeowners in these areas may find their policies cancelled or not renewed, leaving them scrambling for alternative (and often more expensive) coverage, or worse, with no coverage at all.
Focus on Mitigation: To manage risk, some insurers are offering discounts for homeowners who take steps to mitigate potential damage. This might include installing hurricane shutters, fire-resistant roofing, or flood barriers. While upfront costs exist, these measures can save money on premiums in the long run.
Examples by Disaster:
Hurricanes: Coastal regions are particularly vulnerable to hurricanes, with stronger storms and rising sea levels leading to increased flooding. This has caused some insurers to limit or exclude flood coverage altogether, forcing homeowners to seek separate flood insurance, which can be expensive.
Wildfires: Wildfire seasons are becoming longer and more intense, threatening homes in fire-prone areas. Insurers are raising premiums and, in some cases, refusing to write new policies in high-risk zones. This leaves homeowners with limited options and potentially devastating consequences if a fire strikes.
Tornadoes: While tornadoes are more localized events, the increasing frequency and intensity can still lead to significant damage and rising insurance costs. Mitigation efforts like storm shelters can help reduce risk and potentially lower premiums.
The bottom line is that extreme weather is a growing concern for homeowners and insurers alike. Understanding the risks and taking steps to mitigate them can help you protect your home and keep your insurance costs manageable.
Is your hazard insurance company cancelling you?
Is your insurance company pulling out of your state?
Time to call your Senator and Congressperson.
