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Home Insurance Premiums: Democratic Candidates Talk Effects of Climate Change

Updated: Sep 19, 2020

Climate Change is a term that hit the scene in 2006 with the release of Al Gore’s “An Inconvenient Truth”. Since then, the topic has been the subject of heated debate. There are many disagreements on the causes and solutions to this problem. Science has shown us the impact of human behavior. And now we are feeling the effects. In addition to the significant costs to homes and properties, many have paid the ultimate price of their lives. For many, it seems like this does not apply to them. Recently, home insurance premiums have begun rising with the sea level.

Home Insurance Premiums on the Rise

The increasing incidence of severe weather events has made the effects of climate change very real for a lot of Americans. Climate change finally earned some political focus. This was inspired by the tragedies experienced by many areas of our country. To be specific, the issue was addressed for roughly 13 minutes during the final Democratic primary debate in December 2019. Among other things, they discussed the “hot” topic of rising home insurance premiums.

Costs Increase with the Temperature

Several of the candidates incorporated their personal experience into their responses. For example, Pete Buttigieg, the Mayor of South Bend, Indiana, talked about his home. He said, “I live right by the river. My neighborhood flooded… I know what’s at stake and it’s why I insist that we act.” Thus, he knows the costs associated with repairing damages to your home. Many around the country feel his pain with the added stress of seeing their home insurance premiums trending upward with global temperatures.

In addition, Senator Amy Klobuchar from Minnesota talked about the “unprecedented flooding” in the Midwest. She insisted that it is not merely “flyover country” to her, because she lives there. Therefore, she has direct, personal experience with the effects of climate change, which she referred to as an “existential crisis”. Beyond that, she even cited a 50% increase in homeowners insurance in the last few years.

What are the Costs?

As cited in a PBS article by Gretchen Frazee, the National Oceanic and Atmospheric Administration reported that “a total of 219 weather and climate events cost $1.5 trillion from 1980 to 2017”. This number is overwhelming, but you might be wondering what this means for you as a homeowner. If we break it down by type of natural disaster, the costs are significant. According to Home Advisor, addressing damage from fires and smoke can cost approximately anywhere from $3,000 to $20,000.

Take a Look at Your Home Insurance Premiums

You need to know what your policy covers, so you can know how to prepare. For example, according to an article from Business Insider, standard homeowners’ policies

do not usually cover earthquakes. Thus, if you live in an area vulnerable to earthquakes, you might need additional coverage. You might also want to consider taking precautionary action such as retrofitting your home, the average cost of which is about $4,000.

Due to climate change, weather is getting more and more unpredictable. When you own a home, being prepared is crucial. As the saying goes, you never know when lightning is going to strike. And, of course, every part of our country is vulnerable to lightning. According to Home Advisor, a single strike can result in costs averaging $8,000. Would you be able to pay for repairs without specific insurance coverage for this?

Can You Afford Higher Home Insurance Premiums?

Imagine that your home becomes affected by a major storm or natural disaster. If the damage is severe enough, you and your family might have to relocate. Repairs could take much longer than expected. Filing a claim can be a complicated process. Before you have to face this harsh reality, make sure you are covered. Plus, how much will they make you pay? How much will a disaster affect your home insurance premiums? In addition, you should search for an insurance company that makes it easier by offering claim management. The first step is always to assess your own needs. Are you in a high-risk area? What natural disasters could you experience? This will help you know what kind of coverage you need when you turn to Insuravita for a quote.

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