Homeowners across the United States are experiencing an increase in insurance rates due to climate change and the resulting rise in natural disasters. The insurance industry has seen three consecutive years of significant underwriting losses, leading to higher claims and ultimately impacting customers with higher premiums.
According to a study by Policygenius, homeowners insurance premiums have increased by about 35% nationwide over the past two years. States that are prone to wildfires, tornadoes, and other natural disasters have seen the largest increases in premiums. Major carriers such as Farmers, USAA, Liberty Mutual, and Progressive have all raised their rates, with increases ranging from 9% to 14.8%.
Texas and Florida, both states frequently affected by storms and natural disasters, have experienced the highest rate increases. S&P's data shows that Texas saw a premium increase of $425.5 million across the state this quarter, while Florida currently has the highest insurance rates in the country. In Florida, rising premiums are not only attributed to natural disasters but also to fraudulent claims.
While homeowners cannot control the weather, there are certain aspects that can help prevent insurance rates from rising. Shopping around frequently for homeowners insurance can ensure the best rate possible. Additionally, homeowners should inquire about discounts offered by insurance companies, consider implementing disaster-resistant home repairs, and review their deductible.