With global insured losses from natural disasters topping $130 billion last year, and extreme weather events such as the recent wildfires on Maui and Hurricane Idalia in Florida potentially sending that total even higher in 2023, some home insurers have opted to stop writing new business in heavily affected states, while others are raising prices or reducing coverage.
Insurance companies in most states have regulated pricing, but they can opt to pull out of a market depending on regional economics, a tactic that a growing number of insurers are exercising in areas prone to severe weather events, CNBC reports.
From May 2021 to May 2022, 90% of homeowners saw their quoted annual premium increase compared to the previous year, according to Policygenius. The average increase was $134, Policygenius data show.
“In some cases, homeowners won’t be able to get coverage, or they will have to pay more, or they will have less reliable coverage,” said Rich Sorkin, chief executive of Jupiter Intelligence, a climate risk analytics company.
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