![]() For some homeowners, moving may be the best decision It's when the sun is shining," Dickson said. "The time to be thinking about your preparation and your readiness is not when the storm is raging. Stronger windows, hurricane straps, landscaping fixes and fire-resistant vegetation are among the improvements that may result in lower premiums.ĭickson cites the example of a home in Mexico Beach, Fla., that escaped the wrath of Hurricane Michael due to the resilient materials used in its construction. Taking proactive weather-proofing measures can save on costsĬonsumers may be able to obtain lower rates - and improve their property's resiliency - by making certain weather-proofing upgrades, or using building materials known for their hardiness. This includes comparing premiums, financial resiliency, how quickly claims are paid and what kind of documentation is needed, Bennett said. ![]() Online-only insurance companies may offer more affordable options, but consumers need to run the same analysis they would for traditional carriers. AM Best ratings can help consumers compare important factors like an insurer's financial strength and its long-term and short-term credit, Sorkin said. "In some cases, homeowners won't be able to get coverage, or they will have to pay more, or they will have less reliable coverage," said Rich Sorkin, chief executive of Jupiter Intelligence, a climate risk analytics company.Īlready, some homeowners are choosing to roll the dice on ownership without insurance rather than pay increasing premiums.īeyond California and Florida, states where consumers could see the most weather-related impact on coverage options or pricing include Arkansas, Louisiana, Nebraska, Iowa, Kansas, Oklahoma, Illinois, Kentucky and Tennessee, said Stephen Bennett, chief climate officer at The Demex Group, which provides climate risk management solutions.Ĭomparison shopping among insurers will become more importantĪs things continue to unfold, consumers may still have hundreds of choices, and it's advisable to shop around at least once a year. The average increase was $134, Policygenius data show. From May 2021 to May 2022, 90% of homeowners saw their quoted annual premium increase compared to the previous year, according to Policygenius. Contrast that with Hawaii, the least expensive, which has rates averaging $582 a year, according to, though it just suffered a devastating wildfire estimated by Moody's to cost the state between $4 billion and $6 billion in economic losses. The average cost of homeowners insurance nationwide is $2,777 a year, with rates varying by state, according to, a consumer comparison service. Oklahoma is the most expensive state for home insurance at an average cost of $5,317 a year. In June, Farmers Insurance became the latest insurer to pull out of Florida, a market that's been roiled with turmoil for many years. Allstate announced a similar move in November of last year. State Farm, for example, said in May it would stop accepting new home insurance applications in California. But they can decide to pull out of a market if the economics no longer work, a tactic some insurers have exercised. Insurance companies have regulated pricing in most states - they can't just charge consumers whatever they want, said George Hosfield, senior director and general manager of home insurance solutions at LexisNexis Risk Solutions. Sampson, president and chief executive of the American Property Casualty Insurance Association. Between wildfires, thunderstorms, tornados, hail, floods and other natural disasters, "insurers are having to rethink their risk concentration in any one of those areas," said David A. ![]() Things are likely to get worse for homeowners and would-be buyers. Here's how consumers can navigate the home insurance market amid increasing climate-driven weather risks: The home insurance market disruption is going to get worse "Consumers everywhere are going to be faced with tougher choices with respect to limits that are available, the coverages they can purchase and deductibles," said John Dickson, president and chief executive at Aon Edge, which offers private flood insurance and other insurance products. That was driven by the second-costliest event on the books - Hurricane Ian - which caused catastrophic storm surges and damaging winds and flooding in Florida and Cuba, accounting for roughly $50 billion to $55 billion of the global insured loss, according to Aon. Global insured losses from natural disasters topped $130 billion last year, according to Aon. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower ![]() Best Debt Consolidation Loans for Bad Credit ![]()
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