Climate change is no longer a distant threat—it’s here, affecting everything from our homes to our businesses. In recent years, wildfires, hurricanes, and floods have intensified, leading to billions in damages and skyrocketing insurance costs. Understanding the risks and securing the right insurance coverage has never been more critical.
The Rising Cost of Climate Disasters
Extreme weather is becoming the new normal
- According to the National Oceanic and Atmospheric Administration (NOAA), the U.S. experienced 28 separate billion-dollar weather disasters in 2023 alone, setting a new record.
- Home insurance premiums in high-risk areas have increased by 57% in the last decade, as insurers adjust to growing losses.
- Wildfires in California alone have resulted in $78 billion in damages over the past five years, leading some insurers to withdraw from the market.
How Climate Change Affects Insurance
Wildfires: Insurers are raising premiums or dropping coverage in fire-prone areas like California, Oregon, and Colorado.
Flooding: Coastal cities are seeing record-breaking flood claims; yet, 90% of U.S. homeowners lack flood insurance.
Hurricanes & Storms: The number of Category 4 and 5 hurricanes has doubled since the 1980s, leading to higher insurance costs and stricter underwriting policies.
Protecting Your Property and Business
Review Your Policy: Make sure your insurance covers all climate risks relevant to your location.
Consider Additional Coverage: Standard home insurance doesn’t cover floods or earthquakes—additional policies may be needed.
Invest in Prevention: Fire-resistant roofing, storm-proof windows, and proper drainage can lower risk and premiums.
Work with an Expert: A trusted insurance broker can help you navigate the changing landscape and find the best coverage.
The Future of Insurance in a Changing Climate
The insurance industry is evolving to address climate risk, offering new solutions like parametric insurance, which provides automatic payouts based on weather conditions, and green policies that reward eco-friendly building improvements.
Don’t wait until disaster strikes. Protect your home, business, and financial future today!
For more info, text or call Monreal Insurance Solutions at (909) 757-1311 or click the link in bio for a quote.