Climate Emergencies Are Pushing Insurance Rates Higher for Migrating Retirees

Cost of insurance is rising for homeowners in states where weather emergencies are becoming more frequent and more destructive, The New York Times reports. Would-be retirees relocating to coastal or Sunbelt states are seeing insurance premiums surging up to 8.4% year-over-year, and some are struggling to even find coverage in the first place.

Rising property insurance costs coupled with higher property taxes in areas where home values have risen significantly in the past several years were a major concern for clients purchasing investment real estate for passive income generation or for those just trying to dodge inflated prices on their forever homes. 

Insurance experts who work farther up the East Coast report similar market conditions. “What we are seeing is the companies that specialized in writing homeowners’ insurance along the coasts are shutting down, so we don’t have as many options,” said Robin Jaekel, vice president of personal lines at Glenn Insurance, a New Jersey insurance agency that does significant business along the Jersey Shore. “The homeowner costs along the coasts are definitely impacted.”

Hurricanes and nor’easters are the primary reasons insurers are fleeing the market, Ms. Jaekel said. The recent overhaul of the federally subsidized National Flood Insurance Program compounds the headache — and expenses — for property owners who are required by their mortgage holder to carry flood as well as homeowners’ insurance.

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