Depending upon where you live, you should be prepared to pay more.
While the climate change debate rages on, often all it takes is a glance out your window to see what kind of effect it is having on the planet. Unpredictable weather is now, well, predictable. It’s becoming increasingly clear that this is something we will have to learn to live with, and this means figuring out how we may be personally affected. If you own a home – or plan to – it’s very possible that the changing climate will play a role when it comes to your homeowner’s insurance.
Why home insurance rates could be rising
Insurance rates are based on risk. If your home is in an area that very rarely gets any sort of severe weather, you will probably pay less for insurance than someone living in a beach house, for example. But since higher temperatures are leading to things like larger and more frequent hurricanes, this means there is the greater likelihood of property damage. So, it’s quite possible that the owner of that beach house will see his or her rates go up. Plus, because climate change is doing things never seen before, even homes in so-called “safe” areas may not be immune from its wrath, which could also mean higher premiums.
What does this mean for flood insurance?
It probably comes as no surprise that the cost of flood insurance will almost certainly go up. In addition, more homeowners may be required to buy it. Several places around the U.S. that have never had to worry about flooding are suddenly being marked as flood zones by FEMA. This means that if you intend to buy one of these homes with a mortgage, your lender will require you to get flood insurance. But, it may be a wise idea for homeowners to buy flood insurance even if it is not mandatory, as Hurricane Harvey proved.
Insurance companies may start offering discounts
It’s not all bad news when it comes to rising insurance rates because of climate change. Insurance companies may begin to offer discounts to homeowners for doing certain things like taking steps to create a more “green” house that helps the environment. This could include seeking LEED-certification, energy-efficient appliances, or sustainable building materials. Further discounts could come as the result of fortifying a home against weather damage.
Why weather should factor into your home-buying decisions
If you are looking for a new home, aside from the right number of bedrooms and the quality of the local schools, you might want to include weather on your list. Take the time to research the areas you are interested in to learn about their recent history. If the cities in which you are home shopping are prone to things like flooding, hurricanes, or wildfires, you should go in knowing that your homeowner’s insurance premiums will reflect this. It’s worth pointing out that no matter how bad the weather gets, home insurance will always be available, but rates will probably keep climbing.
The right insurance can keep your home protected
No matter where you live, it is important to have the right insurance. If you’re not sure what coverage your home needs, get in touch with the insurance pros at Avante Insurance. Our customizable insurance solutions will ensure that your home and possessions are well taken care of. Give us a call at 305-648-7070 or reach us through our online form.