{"id":32873,"date":"2023-11-07T21:11:55","date_gmt":"2023-11-07T21:11:55","guid":{"rendered":"https:\/\/microloannexus.com\/personal-finance\/climate-disasters-are-driving-up-the-cost-of-insurance-and-impacting-home-values-report\/"},"modified":"2023-11-07T21:12:00","modified_gmt":"2023-11-07T21:12:00","slug":"climate-disasters-are-driving-up-the-cost-of-insurance-and-impacting-home-values-report","status":"publish","type":"post","link":"https:\/\/microloannexus.com\/?p=32873","title":{"rendered":"Climate disasters are driving up the cost of insurance and impacting home values: report"},"content":{"rendered":"
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The growing risk of climate-related disasters is pushing the costs of home insurance to rates an ever-increasing number of Americans can no longer afford, a recent\u00a0analysis\u00a0from the First Street Foundation said.\u00a0<\/p>\n

This increase is not only a blow to homeowners’ budgets; the higher costs can also devalue their properties. Some 6.8 million properties have already been impacted by increasing insurance rates, canceled policies, and the realization of property value devaluation due to the increased cost of ownership. Another 39 million properties, representing 27.1% of all U.S. real estate, face rising insurance prices and reduced coverage due to high climate risks.\u00a0\u00a0<\/p>\n

Homeowners that are most at risk are already struggling to pay for the mortgage and associated costs, even before accounting for possible increases in insurance costs, the analysis said. The additional cost could make many homeowners delinquent in their mortgage payments.\u00a0<\/p>\n

” ,” First Street said. “As risk continues to increase, the number of properties and communities faced with these pricing corrections will only grow into the future, resulting in a realization of the existing overvaluation due to unpriced climate risk and the deflation of the growing climate bubble in the housing market.”<\/p>\n

If you are struggling with rising prices and want to save money, you could consider shopping for a new insurance provider to lower your monthly premium. Visit Credible to compare multiple insurance providers at once and choose the one with the best rate for you.<\/p>\n

STUDENTS HEADED FOR COLLEGE WORRIED THEY DON’T HAVE THE MONEY TO PAY FOR IT, SURVEY SAYS<\/strong><\/p>\n

Insurance is becoming unaffordable and sometimes unavailable<\/strong><\/h2>\n

Auto and home insurance rates have risen at a faster rate than inflation. Car insurance rates had already risen 17% in the first six months of 2023 and costs may increase another 4% by year-end, according to the Insurify\u00a0survey. Home insurance policy premiums increased by an average of 21% at renewal, according to the 2023 Policygenius home insurance pricing\u00a0report.<\/p>\n

The higher cost to cover climate-related damages has pushed several insurers to leave markets at higher risk of natural disasters, according to\u00a0a report\u00a0by Insurify. Last year, 18 climate disasters caused damage costing at least $1 billion each to $165.1 billion, according to the NOAA National Centers for Environmental Information (NCEI).\u00a0<\/p>\n

In the last few years, Allstate, American International Group, Inc. (AIG), Farmers, Nationwide, AAA Insurance, and State Farm have either pulled or reduced coverage across California, Florida and Louisiana. In some cases, these companies chose to withdraw coverage completely, while in others, they are avoiding the most at-risk properties in the state.\u00a0<\/p>\n

It’s not only home insurance that is being impacted, according to Betsy Stella, Insurify vice president of carrier management and operations. Cars are increasingly being caught and destroyed in fires and floods, and severe cold snaps that bring ice increase the likelihood of collisions.\u00a0<\/p>\n

“This has led to auto insurers paying a higher number of \u2014 and a higher price for \u2014 customer claims,” Stella said in a\u00a0statement. “As a result, customers are seeing higher premiums as insurers increase prices to cover these losses.”<\/p>\n

If you want to save money on your car costs, you could consider changing your auto insurance provider for a lower monthly rate. You can visit Credible to shop around and find your personalized premium without affecting your credit score.<\/p>\n

STUDENT LOAN REPAYMENT MAY FORCE SOME TO TAKE ON MORE DEBT: SURVEY<\/strong><\/p>\n

Some homeowners eligible for federal disaster relief<\/strong><\/h2>\n

Fannie Mae and Freddie Mac have programs to\u00a0help borrowers\u00a0affected by natural disasters. Homeowners impacted by a disaster with a Fannie Mae or Freddie Mac loan may be eligible to delay monthly mortgage payments for 12 months through a forbearance plan.\u00a0<\/p>\n

During this temporary period:<\/p>\n