August 21, 2023

The effect of climate change on your property insurance

In one way or another, nearly every part of the country has felt the impact of climate change this summer. Smoke and haze drifted into our cities from the Canadian wildfires, flash flooding damaged areas in the Northeast, and dangerously high temperatures spread across the South. We know extreme weather poses health risks but most folks do not realize, it can also make insuring your property much harder and more expensive.  

Property owners rely on their insurance policies to be there if a disaster strikes. But in the face of increasing risk nationwide, many are paying much more for coverage — if they can get coverage at all.

In recent years, we have seen multiple carriers go out of business or withdraw from certain states, such as New York and Florida. Owners are left searching to find a policy after their company drops coverage, and many are settling for less comprehensive coverage because it is all they can afford.

Why are natural disasters in other states having such an impact on your insurance policy? More natural disasters, results in more claims the insurance companies must pay — and more premium they must pay for their own insurance policies, known as reinsurance. Of course, these additional costs are then passed on to you, in the form of higher premiums. Basically, we are all in it together, whether we like it or not.

If you need help finding insurance coverage for your property, please contact our office today.

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