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As extreme weather becomes the norm, the impact of climate shifts
are front and center. Hotter-than-average ocean temperatures are fueling
mega-storms like Hurricane Ida, which devastated Louisiana before
pummeling the Northeast. In the last year alone, the U.S. suffered a deadly
winter storm in Texas, a record heatwave across the Pacific Northwest,
and rising sea levels along the Gulf Coast—not to mention wildfires
and droughts. ese tragedies underscore just how important it is for
homeowners and insurance companies to recognize the importance of
climate-related impacts.
e United Nations warns that sea levels
may continue to rise, endangering coastal areas
and putting millions at risk for catastrophic
flooding. At the same time, temperature
increases over the next 20 years could lead
to even more fatal wildfires, heatwaves, and
droughts. Scientists are united in believing that
climate change is contributing to the uptick
in dangerous hurricanes. e same goes for
extreme rainfall events and damaging floods.
HOW CLIMATE SHIFTS IMPACT
HOMEOWNERS INSURANCE
Homeowners insurance costs are rising
nationwide. Premiums generally grow an
average of 4% year over year across the U.S;
however, rates are increasing even more in areas
that are more likely to experience climate-
related events. Based on a report by Matic
Insurance, annual premiums in hurricane-prone
states like Florida, for example, are now well
over $3,000 per year and have grown 13% year
over year. Meanwhile, California premiums rose
8%. ese increases are worse in the highest-
risk areas. For instance, average premiums
increased 66% in Miami, 57% in Fort Myers,
and 17% in New Orleans. As risk goes up,
insurers may stop providing coverage for fear of
going broke trying to pay claims—potentially
Feature By: Ben Madick
THE HOME
INSURANCE
FORECAST
As extreme weather becomes the norm, home insurance may become increasingly
unaffordable—or simply unattainable for homeowners in some regions.
