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21 September 2023
WICHITA, Kan. (KSNW) — A new study suggests one reason homeowner’s insurance rates are continuing to increase is the risks from natural disasters. From the historic fires in Hawaii to flooding in the northeast part of the country, a local insurance agent says natural disasters across the U.S. have contributed to the increase.
An increase in insurance claims has led to an increase in premiums.
“Losses, because of higher repair costs, more fires, more crime, just add up, and pretty quickly you’re going to have some major rate increases,” said John Eck, Eck Agency.
Eck says he’s seen homeowner’s insurance rate increases of up to 15% this year.
“When the insurance companies pay out money for those disasters in Florida, California, big hail storms in Texas, it’s going to affect the rates here in Kansas,” said Eck.
The study comes from the First Street Foundation. It looked at the risk of fires and natural disasters. Their research is used in the finance sector to calculate the potential risks to properties. It suggests costs are going to continue to rise.
“We’re certainly seeing at least a doubling on average. The most risky areas are seeing even more than that. We’ve heard increases of four to five times the insurance premiums increasing,” said Dr. Jeremy Porter, First Street Foundation.
He says protecting your home from a disaster can be the best way to fight the insurance increases.
“High wildfire roofs you can buy that are hardened and don’t burn. That costs 5-6 thousand more, but if you pay that money upfront, you will likely protect yourself and lower your premiums over time,” said Porter.
If you own a home, consider shopping around for lower insurance rates or ask about increasing the deductible. It can be important to understand what is covered in your policy.