2 days ago
Homeowners forced to 'gamble' amid worsening insurance crisis across US: 'Struggling to keep up'
Homeowners insurance is going up around the United States, particularly in places that have been hit by natural disasters, according to Insurance NewsNet.
No one loves paying for insurance, but covering those costs is usually better than risking a catastrophe without it. That has been true for years. Now, though, homeowners are having to decide if they should lower their coverage because it's getting so expensive.
In areas across the country, homeowners insurance costs are soaring in the wake of hurricanes, wildfires, and other natural disasters. One senior citizen in North Carolina is considering lowering her coverage.
"Admittedly, it is a gamble, but a gamble that a senior on a fixed income must consider," Diana Hill said. "Many of us seniors, if not hurting … are struggling to keep up with the cost of protecting our homes."
In recent years, insurers have paid high prices to replace homes and property damaged by natural disasters. The Federal Emergency Management Agency estimates that the cost of damages from Hurricane Helene alone will be over $1.4 billion. Insurers have to recoup that money somehow, and they are trying to do it by raising premiums.
Some homeowners dispute these high costs. They say they aren't getting the amount of money they should have been given based on their policies. Others are getting dropped without any warning. The companies say their costs are going up, but no one can be sure where all the money is going.
Rising homeowners insurance costs are bad for everyone affected, especially seniors. However, they also indicate a larger problem.
According to the World Wildlife Fund, natural disasters are on the rise around the globe, due in large part to the amount of dirty energy sources that are burned and the planet-overheating pollution they create.
In fact, as the Intergovernmental Panel on Climate Change observed, per the WWF, these disasters are already worse than what climate scientists had predicted.
That's putting more homes at risk, and without a financial safety net, some may find it difficult to recover if their property is damaged or destroyed.
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Insurance regulatory groups around the country are meeting to figure out what can be done about rising homeowners insurance costs. Meanwhile, voters are turning to pro-climate action candidates in an effort to get changes codified into law to protect the planet.
In addition, insurance companies are trying to figure out what to do about the way the climate is changing.
As Sen. Sheldon Whitehouse, D-Rhode Island, said, "[A board member for] the largest insurance company on the planet said that he just does not see a way for the insurance business model to survive without meaningfully addressing climate change."
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