Extreme weather events are causing home insurance prices to soar in at-risk areas.
What's happening?
According to Community Impact, many people in Texas are facing astronomically high insurance prices, particularly because of the increased risk of natural disasters.
From 2022 to 2023, insurance prices spiked by 11% nationwide, but Texans experienced a 23% rise. The state has "some of the highest home insurance premiums in the nation," according to Community Impact.
The city of Houston is deemed a "high-risk" area because of the regularity of extreme weather events, such as high winds, hail, hurricanes, and flooding. Because of this, insurance companies have upped the prices of premiums in the area.
Community Impact reported that published insurance nonrenewal rates from the U.S. Senate Committee on the Budget confirmed that "areas most vulnerable to climate-related risks have the highest nonrenewal rates and the most significant rate increases."
Why are rising insurance rates concerning?
No one wants their bills to rise, especially not when the cost of living is so steep.
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Sadly, many Americans are having to forgo home insurance because of the costs. In areas such as Texas, where, according to Houston Public Media, repairs after last July's Hurricane Beryl cost up to $4.5 billion, it's particularly risky not to have insurance on your home.
Communities are in danger, and insurance companies are dropping their policies.
Of course, natural disasters such as floods have been happening for thousands of years, but scientists have proved that human activity, such as burning coal and gas, is making these extreme weather events much more intense and frequent.
What's being done about high home insurance premiums?
Gov. Greg Abbott signed House Bill 2067 into law in June to make insurers "provide a reason for when they decline, cancel, or don't renew a policy."
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No way 😨 This could help hold insurance companies accountable. However, state consumer advocate John Cobarruvias disagreed, telling Community Impact, "Having government interference come in and set a rate is a total disaster."
Though there aren't many ways to save yourself from overpriced insurance, there are plenty of techniques you can try to keep you and your family safe from extreme weather.
From building an emergency kit to weatherizing your home, you can equip yourself and your loved ones to best get through an emergency.
On a structural level, governments around the planet need to band together to reduce the use of fossil fuels to counter increasingly intense weather events.
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