Inflation, increasing severe weather events lead to higher homeowner insurance premiums - KLTV
Inflation, increasing severe weather events lead to higher homeowner insurance premiums
TYLER, Texas (KLTV) - In East Texas, wildfires, drought and even rainstorms have rampaged through communities, in some cases causing damages to residents’ homes.
In the last year, Texas homeowners’ insurance has gone up by 20-30 percent according to insurance experts, and inflation, along with an increase in severe weather events, is only driving up costs even more.
According to a NerdWallet analysis, the average cost of homeowners insurance for homes in Texas is about $3,800 per year; that’s about 113 percent more than the national average.
And according to insurance agent and owner of Maguin Insurance, Donald Maguin, when severe weather events happen, demands for labor and supply increase, resulting in construction and repair costs going up.
“If you’re living in a high, high risk flood zone, fire zone, hail zone, that’s definitely going to show in the premium in that area.”
However, he says there are ways to combat these prices.
“We recommend people shop their rates regularly. You know, annually is good. You know, they’re constantly, these insurance companies are constantly reevaluating where their rates should be. So, they’re going up and they’re going down as well.”
Apart from seeing different options, he also advises people to consider adjusting their plans.
“Another thing you can do is bundling your policies, as well. You can consider increased deductibles as well, and you know, raising those up would also lower those premiums.”
Most standard home insurance policies will cover damage for all severe weather events except for flooding and earthquakes. It is recommended that in the event of having to file any damage claims on your property, to contact your insurance company immediately and document as much as possible.
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Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”