Insurance Costs are Rising
The Art
Insurance - Harder to Get and More Expensive
“Climate change heightens the risks of wildfires and other natural disasters. As insurance payouts for losses sustained in those disasters increase and as uncertainty about future losses grows, people in many high-risk areas have faced difficulty obtaining or affording insurance coverage for their property. As risk and costs increase, premiums will increase as well, which may make insurance less affordable for homeowners. If state regulators do not allow higher premiums, insurers may exit high-risk areas, reducing the availability of insurance… *
“…Florida, California, and Louisiana have been especially hard-hit in the last few years by climate disasters, and as a result, multiple insurers have declared insolvency, terminated policies, or left the state, the Insurify report said.
As hurricanes become more severe, neighboring states such as Alabama are seeing big increases in insurance prices. Even so-called "climate havens"— typically Midwestern states insulated from severe hurricanes and wildfires — aren't safe from a climate or insurance crisis. Thunderstorms, hailstorms, tornadoes, and flooding are all causing property damage and driving up insurance costs. In fact, Insurify predicts that the Midwest will see some of the greatest insurance cost increases as insurance providers scramble to change their pricing strategies.”**
*Climate Change, Disaster Risk, and Homeowner’s Insurance
Congressional Budget Office, Nonpartisan Analysis for the U.S. Congress August, 2024
**Climate change is causing a home insurance “crisis” in these 13 states”, Christine Ji, Business Insider, Oct 22, 2024
