Along w. Exiting States/Regions, Insurance Companies Also Cutting Natural Disaster Coverage

[hatrack]

In the aftermath of extreme weather events, major insurers are increasingly no longer offering coverage that homeowners in areas vulnerable to those disasters need most.

At least five large U.S. property insurers — including Allstate, American Family, Nationwide, Erie Insurance Group and Berkshire Hathaway — have told regulators that extreme weather patterns caused by climate change have led them to stop writing coverages in some regions, exclude protections from various weather events and raise monthly premiums and deductibles. Major insurers say they will cut out damage caused by hurricanes, wind and hail from policies underwriting property along coastlines and in wildfire country, according to a voluntary survey conducted by the National Association of Insurance Commissioners, a group of state officials who regulate rates and policy forms.

Insurance providers are also more willing to drop existing policies in some locales as they become more vulnerable to natural disasters. Most home insurance coverages are annual terms, so providers are not bound to them for more than one year. That means individuals and families in places once considered safe from natural catastrophes could lose crucial insurance protections while their natural disaster exposure expands or intensifies as global temperatures rise.

EDIT

Under the policy changes many large insurers are reporting to regulators, firms will continue to offer baseline policies to clients in disaster-prone areas, but without protections for damage caused by those disasters. For example, a policy in a region afflicted by hurricanes may exclude coverage for wind or hail damage, or in wildfire country, a policy without fire and smoke protection. Consumers who want those coverages would need to purchase a supplemental policy or shop for insurance from another provider.

“The fact that insurers have the capacity to limit their exposure or change their exposure over time means at the end of the day their concerns are not fully aligned with the concerns of their policyholders,” Schwarcz said. Representatives from Allstate and Erie declined to comment. Berkshire Hathaway and Nationwide did not respond to requests for comment.

EDIT

https://www.washingtonpost.com/business/2023/09/03/natural-disaster-climate-insurance/

[House of Roberts]

1. Factor in that mortgage lenders won't write loans

without insurance to protect their investment, and you’ve got a problem, which happens when halfway through a loan, the homeowner can no longer get affordable coverage.

[Wonder Why]

2. There is an upside. The idiots that build in hurricane and earthquake zones, flood areas, etc

don't belong there. The first time, it is a disaster. After that, it is stupidity.

FEMA repeatedly pays to clean up after them. First time, the insurance company pays for the damage in cash. FEMA helps you financially and buys your worthless land and turns it into National Seashores or whatever. Can't get insurance initially? You can't build there. It's not safe. By buying the land, the government keeps it out of the hands of the super rich and big corporations who would keep out the citizens from their seashores and parks.