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How Anticipated Weather Patterns Will Affect Your Homeowners Insurance Rates

When it comes to home insurance, the weather is responsible for many expensive and unpreventable insurance claims. Looking back on Hurricane Katrina in 2005, many have wondered how home insurance policies can continue to guarantee reimbursement after all the severe weather perils consumers have faced. Katrina was one of the most devastating hurricanes of all time and it forced Americans to take a more detailed look at who should pay for losses when the weather causes insurable incidents. For months, there were headlines about high-profile court cases about what exactly was covered as storm damage. Then, it all faded away. But just because the media has dropped the story doesn’t mean there isn’t still cause for concern. People may still struggle to find storm and flood insurance depending on where they live and the policies may be written in ways that limits the insurer’s liability.

Changing Weather Patterns mean Changing Home Insurance Rates

In December of 2009, world leaders met in Copenhagen to discuss what to do about global warming. They did so because the accumulating body of scientific evidence proving a global warming trend is undeniable and the potential consequences are devastating. These warming temperatures and extreme weather patterns will increase the amount of flooding and natural disasters the world experiences and that means home insurance premium rates are also going to rise.

Scientists expect storms and floods to become more frequent and severe. As temperatures rise, there will be more rain associated with all storms. But look around; in the face of all this evidence, are federal and state teams actually investing in flood management defenses as a priority? Are sea defenses in low-lying areas being improved to guard against storm surges? Are hillsides being reinforced to reduce the risk of landslides? Are drainage systems being expanded in towns and cities to channel excess surface water away from inhabited areas? The answer, sadly, is no. With budgets deficits at all levels of government, investing in preventative storm protection programs is not seen as a high priority. So your home insurance premiums are going to rise not just because the risk of losses from the weather is increasing, but also because the insurers will need more capital to pay out on the increasing number of claims when the storms hit.

Protecting Your Own Bottom Line

When you get home insurance quotes, make sure the proposed policy will cover you against weather damage in general and flood damage in particular. You are warned that, depending on where you live, cover may either be excluded altogether or hedged by limitations making it very difficult to claim. When you get your home insurance quotes, ensure that your projected rebuilding costs include damage to the foundations and repair to the structure caused by flooding.

And remember, while home insurance companies are not out to get you, they may not always put your best interests first. But that doesn’t mean you are at their mercy; make sure you have a full understanding of your actual needs when you get online home insurance quotes and you can make sure your bottom line is covered.




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