(TheConservativeTimes.org) – The rising cost of home insurance is an effect that comes from the climate crisis and it’s affecting insurance companies across the U.S.
Allstate and State Farm are two companies that have announced they are not offering fire insurance in California due to the increase in fire damages and the resulting financial hit they are taking from these natural disasters. This means they are dropping thousands of homeowners from their insurance.
Other insurance companies have also been dealing with issues considering the amount of hurricanes that have been seen on the coast. With this, tornadoes and “kitty cat” storms bringing hail have caused problems for states in the Midwest.
These storms, referred to as “Severe-convective storms,” are powerful thunderstorms that usually spin off hail storms and tornadoes, especially across flat lands, like those in the Midwest. Damages from these storms started to add up and just last year these storms caused more than fifty-billion dollars in damages.
Matt Junge, who oversees property coverage in the US for the insurance company Swiss Re, said, “As insurers, our job is to predict risk. What we’ve missed is that it wasn’t a big event that had a big impact, it was a bunch of small surprise events that just added up. There’s this kind of this reset where we’re saying, ‘OK, we really have to get a handle on this.’
There are multiple factors to consider when looking at these convective storms. More people are moving to places where these storms are more common, which means they are ripping through more populated areas. On top of this, inflation has made it very expensive to rebuild properties.
Although climate change isn’t the only factor that could be to blame, it’s still affecting the frequency of these storms. Insurance companies are feeling the heat and many small insurance companies have had to shut down due to the amount of claims or the limit on their offerings due to common natural causes and storms.
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