Wildfires in the west, tornadoes through the midwest and hurricanes to the east, regardless of where you live, natural disasters are becoming the norm.
Climate change is making natural disasters more frequent and more intense, meaning, among other things, more risk for your home. Those increasingly expensive natural disasters are impacting homeowners' insurance rates across the country.
According to a recent survey from NerdWallet, more than half of US homeowners, 54%, saw their premiums go up in the past 12 months. About a third of them, 32%, said it's because of extreme weather events.
Premiums aren't usually tied to specific weather events, instead, experts say the industry is responding to long-term trends.
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"You have more wildfires and dry areas. And you're having more wind damage, hail damage, and flooding in other parts of the country. That's why premiums have really accelerated a lot," said Holden Lewis, a home and mortgage expert with NerdWallet.
Premiums are not only tied to higher risk, but also to more housing being built in parts of the country that are vulnerable to extreme weather events.
"If you're insuring 100,000 houses and then a whole bunch of houses are built, the next year you're ensuring 110,000 houses. That means you have 10% more exposure if you are an insurance company. And so this is something that insurance companies are really weighing," Lewis said, referencing South Florida and Texas' Gulf Coast.
Insurance companies are not only raising rates but also pulling out of certain areas altogether. It's leaving some homeowners scrambling or settling for less coverage because it's all they can afford.
Another change happening in the industry is the way insurance companies are modeling risks.
"The industry is switching from looking at historical data to set their premiums to predictive data," said Lewis. "That's another element that is increasing insurance premiums."
There are some things homeowners can do to try and lower their premiums and protect their homes.
Shop around every few years. Know your risk and buy the right insurance coverage for that risk. Most homeowners' insurance policies cover fire and wind damage, but they don't typically cover flooding.
Consider working with an independent insurance agent. This can be especially helpful in areas like Florida, Louisiana and California, where it's more difficult to find affordable insurance.
"Another thing, frankly, is to move, you know, and I think that some retirees actually might consider this," Lewis said.
