This past year’s onslaught of wildfires and severe storms has impacted homeowners across the U.S. and left many insurance companies scrambling to keep up with all the claims. As the industry faces billions of dollars in total losses, it’s likely a large percentage of home insurance policyholders will end up seeing the lingering effects of these natural disasters through rising coverage costs. Even those living in parts of the country that didn’t directly experience the devastating damages have the potential to be affected. Here’s an overview of how the recent property loss may influence policy premiums.   

What Natural Disaster Claims Mean for Home Insurance Premiums Nationwide

How Insurance Companies Cope With High Claim Volumes 

With homeowners insurance claims equaling such a significant payout, carriers must find a way to offset their loss. Although insurers are prohibited from raising rates as the result of just one event, they can factor past natural disasters into predictions for future events. If it seems they’re vulnerable to a higher level of risk than they were previously, they may decide to charge more for coverage. In turn, natural disasters often have a considerable impact on the insured as well as the insurer.

What Policyholders Can Expect 

Those who currently carry home insurance anywhere in the U.S. should be prepared to see their premiums go up when it comes time to renew their policies. Additionally, it’s possible insurers will begin employing stricter underwriting policies. In some cases, they may even refuse coverage for properties located in certain disaster-prone areas. As major weather events increase in frequency, insurance companies could possibly pull out of high-risk markets, leaving homeowners to seek alternative options. 

In the event your home insurance premium increases or your coverage is reduced, it’s in your best interest to shop around for a better deal. The professionals at Sun Valley Insurance can help explore all your options to ensure you remain adequately protected at the best price possible. As an independent agency, they have access to several reputable insurers who offer competitive rates, and they will take the time to make sure you’re receiving every discount you qualify for. For nearly a decade, they’ve been the go-to source in Indian Trail, NC, for quality insurance solutions. Call (704) 282-1155 to request a quote or visit them online to learn more about their products.