How Climate Change Is Making Homeowners Insurance Harder to Get  

A robust homeowners insurance policy is becoming increasingly important as severe weather events continue to hit the United States each year. It is also becoming more challenging for homeowners to obtain the insurance they need at an affordable price without sacrificing coverage. Understanding how weather events impact homeowners insurance is an essential part of being a responsible property owner.

Climate-related Impacts on Homeowners Insurance

Weather events can have the following impacts on homeowners insurance:

• Higher premiums— As costly weather events, such as tornados, hurricanes, floods and wildfires, become more frequent and destructive, insurance carriers must provide more money for claims. This necessitates insurers recouping their costs by increasing premiums.

• Higher building prices and labor costs—The demand for building supplies and labor tends to increase due to the number of homes needing to be rebuilt or repaired. Additionally, homes are being built with more expensive materials that present a higher cost to replace.

• Policy cancellations—Some insurers may cancel or adjust coverage for properties in areas that are high risk for specific types of weather events.

Learn More

Contact Muzio & Rovero Insurance Services to review homeowners insurance options near you. We can make policy recommendations to help keep your home financially protected against the impacts of severe weather events. We can also recommend additional methods that can be implemented to protect your home and ways to save on your insurance premiums, such as installing a sprinkler system or storm shutters.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.