A recent winter storm has further exacerbated a growing crisis for homeowners in Florida and Louisiana, where insurance companies are either raising rates significantly or pulling out of the market entirely. This comes as extreme weather events such as hurricanes, floods, wildfires, and snowstorms become increasingly common due to climate change.
Several major insurance companies have already exited or discontinued coverage in these states, leaving thousands of homeowners without affordable options. In Louisiana, at least 12 large companies fled the market after four major hurricanes in 2020 and 2021, while Florida has seen significant rate hikes from remaining insurers.
The unprecedented winter storm that hit both states in January shattered previous records with snowfall totals ranging from 8-10 inches. Many homes are not built to withstand extreme cold weather, making heavy snow and ice a recipe for burst pipes and roof damage.
As unusual weather events become more frequent, insurance premiums could skyrocket, leaving some homeowners to pay out-of-pocket for repairs if insurers don’t offer policies for atypical conditions such as snowstorms.
Homeowners who lose their coverage or can’t afford renewal options may turn to state-run programs, but these policies often come with higher costs and fewer benefits. Experts warn that the primary purpose of insurance is to protect against covered perils, making it essential to file a claim rather than avoid doing so out of fear of rate increases.
To prepare for future extreme weather events, homeowners can take steps such as shopping around for better deals on home insurance, investing in extra attic insulation and air sealing to prevent frozen pipes, and documenting damage after an incident.
Source: https://www.yahoo.com/news/unprecedented-storm-fuels-growing-crisis-104503568.html