How to Prepare for Rise in Insurance Costs
With summer upon us, it is time to get that air conditioner serviced and ready to battle the heat. In April, the National Oceanic and Atmospheric Administration (NOAA) released a map showing areas within the U.S. are expected to experience extreme temperatures this year.
Last year, extreme weather events cost the nation over $1 billion. By April 8, 2024, we have experienced two extreme weather disasters which together exceed the 2023 total financial loss. Climate hazards force disruption of businesses, governments, and critical services. Expenses relating to multiple facets of climate change are financially straining households. Physical damages and costs are not just affecting the community hit by a weather event. New research indicates climate change is making a dent in your wallet. From insurance costs to higher food bills, people are sensing the mounting costs.
When temperatures steadily climb, so does the cost of insurance. More disasters mean more risk to your home, car, and health. Home insurance companies are beginning to pull out of areas prone to hurricanes, tornados, floods, and fires. In hurricane-prone states, companies may require multiple policies with separate deductibles. The language within those policies is subject to change frequently increasing costs for coverage. Deductibles are reaching an all-time high for consumers. Floods and earthquakes are not covered by most homeowners’ or renters’ policies necessitating extreme damage coverage. Business Insider reported ‘American car insurance rates have reached a 50-year high, outpacing inflation. Higher premiums and deductibles are driven by the climate crisis and increased accident risk’. Heat stress impacting morbidity and mortality is creating additional health problems. The frequency and intensity of heat waves pose health risks to people. Heightened temperatures compromise air quality exacerbating respiratory issues.
Mitigating risks and prepping finances can help combat rising costs. To lower your home insurance premiums, consumer advocates suggest knowing insurance options and weatherproofing upgrades to improve resiliency. Evaluating your risks will help with implementing a strategic plan. A few preventative measures, such as strategic landscaping or fire-resistant roofing can lower premiums. One of the most effective ways to lower your home insurance costs is to integrate smart technology into your home. Programmable thermostats, sensors for gas leaks or freezing pipes, and smart locks are just a few great investments. The Inflation Reduction Act can help you recoup some of your energy-efficient installations such as solar panels or purchasing an electric vehicle. Lowering your health costs through prevention can help you save money. Visiting green spaces (Piedmont Park, Mountain Way Common, Historic Fourth Ward Park), increasing physical activity (PATH 400, Buckhead Run Club, Buckhead Run 5K), using transit systems when available (The BUC, MARTA), and encouraging a healthier diet. Georgia Power has efficiency programs to help with costs.
