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Facing the Storm: Insuring Homes in Hurricane Zones

According to the Insurance Information Institute, there’s been an increase in the financial impact resulting from hurricanes. The report found that nine out of the ten most financially damaging hurricanes to strike the U.S. have happened since 2005. Research also showed that more people have been moving to states affected by hurricanes since the 1940s.

Losses are up in part, because of the increased frequency of these powerful storms, but another factor is construction. Data shows that homes built in these areas of strong hurricanes are larger and more expensive. It’s important to note that the report shows that the frequency/severity of hurricanes is not the primary cause of rising insured losses, however, climate is still an important factor to mention.

The Impact on the Insured

The increase in insured hurricane losses can have a direct impact on policyholders. There could be changes in costs, coverage availability, claims processing, and more. Policyholders need to stay informed to assess their insurance requirements.

Premiums

The increased frequency and severity of hurricane-related losses, along with a growing population can lead to higher insurance premiums. Insurers can adjust their pricing based on the elevated risks. Homeowners in hurricane-prone areas could see higher premiums.

Availability 

Finding comprehensive insurance options could become more difficult for insurers in vulnerable areas. This is another financial impact on hurricane-prone areas.

Claims

Increased claims are an effect of a higher number of insured losses. Homeowners could experience longer processing times or delays in receiving payouts.

Policies

The terms and conditions associated with insurance policies could change due to the changing insurance landscape. Insurers can adjust coverage limits, deductibles, and other measures to make up for the increase and severity of storms.

The Areas Affected the Most

The Insurance Information Institute found that flooding has been a significant problem in recent years. Researchers looked at claims information from the National Flood Insurance Program that showed a subsequent rise in the following areas:

  • Coastal Texas and inland areas of Louisiana
  • Coastal northern Florida, Georgia, North Carolina, and South Carolina
  • Inland northern New York, Vermont, and New Hampshire

Meanwhile, the Census Bureau reported that Texas, Florida, North Carolina, South Carolina, and Georgia led the United States in population growth between 2011 and 2020. 

The Defense You Need Against Strong Storms

Let COBIA Insurance Agency be your partner in protecting your home, even if it’s in hurricane-prone regions. We are committed to offering comprehensive insurance coverage options that can be tailored to your unique needs based on where you live. With the increase in frequency and intensity of hurricanes, homeowners have to be proactive about safeguarding their assets.

We’ll ensure that your home is protected if unexpected storm damage occurs. Please contact us to learn more about our insurance solutions. We have team members ready to answer any of your questions and walk you through the process. We look forward to working with you!

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