The Rising Costs of Homeowners Insurance
Why have my Homeowner's Insurance rates gone up so much? Climate change is significantly impacting the cost of insurance in several ways: Increased Frequency and Severity of Natural Disasters: As climate change leads to more extreme weather events, such as hurricanes, floods, and wildfires, the frequency and severity of claims filed with insurance companies increase. This can lead to higher premiums as insurers adjust their rates to cover the rising costs of payouts. Higher Risk Assessments : Insurers are increasingly applying more rigorous risk assessments based on climate data. Properties in high-risk areas may see rising premiums or may even become uninsurable, which alters the market dynamics for homeowners and businesses alike. Reinsurance Costs : Insurers often transfer some of their risk to reinsurance companies. As climate-related events become more common, reinsurance costs are likely to rise, which in turn pushes up the costs for primary insurers and, subsequ...