How Climate Impacts Your Property Insurance Costs

climate change and property insurance costs

There are plenty of factors that can impact your property insurance costs, from your location and the size of the home to the contents, but one thing that homeowners may not be prepared for is how climate is now affecting their premiums. A recent report released shows Canada is warming up at twice the rate of the rest of the world; this has left insurance providers feeling uneasy. That uneasiness is most likely going to translate to a rise in premium rates. So how exactly does climate impact your property…

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Citizens Insurance is still battling thousands of Hurricane Irma lawsuits

Citizens Insurance - Hurricane Irma - Home Destruction

The Florida insurer of last resort is still grappling with legal challenges from two years ago. Florida Governor Ron DeSantis and state lawmakers recently approved a Citizens Insurance overhaul plan. The overhaul redesigned the controversial “assignment of benefits” practice. It also added new restrictions regarding lawsuits that can be filed against insurance companies. The state-backed insurance company will still need to deal with its thousands of existing lawsuits. Citizens Insurance is still attempting to work its way through thousands of existing lawsuits. These were filed well before the overhaul was…

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American homeowners insurance rates have skyrocketed in the last 10 years

American homeowners insurance rates - House

A recent study showed that property owners are paying far more now than a decade ago. Natural disasters occurring over the last ten years are being blamed for a surge in American homeowners insurance rates. Tornado alley has experienced the fastest increase in home insurance premiums in the US. A LendingTree subsidiary, QuoteWizard, looked at data over the last 10 years to explain the steady, sharp increase in American homeowners insurance rates. What they determined was that there has been a series of natural disasters that have kept premiums moving…

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Climate change impact greater than insurance industry’s capacity to offset financial risk

Climate change impact - World in water

The affects of a warming planet will prove to be too expensive for coverage alone to keep up, say analysts. The financial risks associated with the climate change impact may become greater than what the insurance industry can cover, according to a new report. Analysts say that the financial risks are growing, from investing into coal-powered plants to the climbing premiums for flood insurance, the expenses are already rising and will continue to do so. That said, the difference that firms can make to control both the risks and the…

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Camp Fire in Northern California becomes states most destructive wildfire

Camp Fire - Forest Fire - Wildfire - Firefighters

The wildfire has taken at least 23 lives and has left a massive trail of destroyed homes, cars and businesses. Northern California’s Camp Fire has officially become the most destructive wildfire in the state’s history. The catastrophic blaze is leaving only charred remains of homes, businesses and vehicles. Even more devastating is the tragic loss of life, as at least 23 people have been killed. California has been plagued by wildfires in recent years, with this blaze already seeing the most destruction. The death toll rose over the weekend as…

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Insurance industry calculations required to change due to climate change impact

Insurance industry calculations - Global Warming

Insurers have become the front line of the unpredictability linked with the Earth’s rapid warming. Insurance industry calculations are being forced to change as a result of the impact of climate change on the risks facing multiple sectors. Due to the nature of the business, insurance companies are among the first to face these issues. Measurably increasing rates of natural disasters are raising the number of claims and the size of those insurance claims to property, business, and auto insurers. Storms such as hurricanes and tornadoes, as well as droughts…

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Allstate releases its catastrophe loss estimate for July 2018

Catastrophe loss estimate - Destruction - American Flag

The American insurance giant released the announcement of loss as well as its future predictions. The Allstate Corporation recently released its catastrophe loss estimate for July 2018. Throughout that month, it estimates having experienced loss from catastrophes reaching a pre-tax $262 million. This figure converts to $207 million after taxes are taken into consideration. The Allstate Insurance catastrophe losses were the result of 15 individual events in July. The July 2018 catastrophe loss estimate were the outcome of 15 separate catastrophic events. They brought with them losses of $220 million…

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