Could your Home Insurance Change or Be Dropped?

The simple answer is, yes. Several factors, primarily the increased occurrence of climate driven storms and wildfires, are leading many insurance companies to hike rates or simply drop coverage on homeowners. People in disaster-prone areas are the ones most impacted but the rate hikes could be coming for us all.

I enjoyed a recent “Fresh Air” interview in which they talk about this issue during a conversation on climate migration. In the interview they bring up government backed insurance programs known as FAIR (Fair Access to Insurance Requirements) plans. These plans are used all across the country to provide insurance when homeowners can’t get it on the standard market. The more you read, the more you learn that these plans have also been used as an incentive for people to rebuild and continue to move into areas that have been impacted by storms and flooding. Yikes!

Don’t be surprised if the cost of your homeowners insurance policy increases in the near future. If you need recommendations on a new policy provider, let me know!