How Weather Impacts Your Insurance Costs 

Whether you’re a homeowner, renter, commercial landlord or motorist, owning and maintaining physical property and assets requires careful consideration of various risks and perils, including those imposed by Mother Nature. Severe weather can come in many forms, and those shopping for insurance in areas subject to inclement conditions may find their coverage affected.

How Can Insurance Rates Be Impacted?

If you live in areas prone to severe weather, you might find that the policies you are privy to come with higher premiums. Insurance carriers must carefully assess risk levels associated with agreeing to cover you and your property. As such, being in areas where losses might be more likely, such as those prone to natural disasters, can make you appear more risky. To offset this perception of a greater likelihood that you may file a claim due to severe weather, insurers often charge more for coverage.

How Else Might Coverage Be Affected?

In addition to higher rates, you might have more trouble getting insurance for your home or other properties due to forecasts in your area. For example, in recent years, some home insurance carriers have exited the Florida market due to increasing claim costs and losses related to hurricanes. As such, local homeowners may have trouble finding coverage. Similarly, consumers in areas at high risk of wildfires might have fewer options.

Furthermore, even if you’re able to find a policy in your area, it might come with restrictions and exclusions related to certain weather events. For instance, homeowners in coastal areas prone to tropical storms might find that wind-related damage is explicitly not covered by standard policies, necessitating additional coverage. Adding such an endorsement will typically further increase your costs.

Learn More

At Pacelli Insurance, we can help individuals, families and businesses understand how local weather patterns may impact their options and costs. Contact us today to discuss further or compare personalized quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.