:max_bytes(150000):strip_icc()/GettyImages-2165773288-a4b86451642f4149a3aa534ce526fffb.jpg "The weather is causing more homeowners to look for better insurance, but can they find it?")
Key findings
- Severe weather is becoming more frequent and is leading to rising home insurance premiums, especially in places where severe weather is more common.
- As homeowners continue to file weather-related insurance claims, many of them are purchasing additional coverage or looking for lower-cost providers.
- More than half of Americans said their insurance premiums have increased due to the storms, and the majority are concerned that prices will continue to rise.
As severe weather becomes more frequent, homeowners are increasingly looking for providers who can offer them better insurance at lower prices.
Since August 8, there have been 19 severe storms, each causing more than $1 billion in damage, according to the National Centers for Environmental Information. According to a recent survey by insurance software company Insurity, nearly 40% of Americans have filed insurance claims due to severe weather.
As more homeowners rely on their insurance during severe weather, many are looking for better rates and coverage, Insurity found. More than a third of respondents said they would be willing to switch to an insurer that offers more options for severe weather events.
Unfortunately, it can be difficult to find other options.
It can be difficult to get it
More than one in four respondents have purchased additional insurance coverage due to recent severe weather, the survey found. However, 25% of respondents said it was difficult to obtain the necessary insurance coverage due to the risks in their area.
Insurance premiums are often increased in states where extreme weather events are most likely. In response, insurance companies have either raised rates or dropped coverage for certain states to save costs.
For example, State Farm limited its insurance coverage in California earlier this year due to the risks posed by increasingly frequent wildfires there. These restrictions included the non-renewal of 30,000 property insurance policies.
And it will definitely be more expensive
Not only is insurance more difficult to obtain, it can also become increasingly expensive.
According to the consumer price index, insurance prices rose overall by 3.1% compared to the previous year. Fifty-six percent of those who reported an increase in insurance premiums in the Insurity survey said it was related to the increase in severe weather.
A separate report from insurance comparison site Insurify predicted a 6% increase in insurance costs in 2024, bringing premiums to an average of $2,522 by year’s end.
Homeowners are feeling the impact of rising costs, with many worried about insurance prices over the next five years. More than 70% of Insurity survey respondents were concerned about how severe weather will affect their insurance coverage.
