New Report Reveals Reasons Why Home Insurance Prices Increase

Owning a home is becoming harder to afford for many Americans, in many cases due to the high cost of homeowners insurance. A recent report found that energy companies are responsible for a large amount of the pollution that is leading to climate change and more extreme weather, wildfires and flooding. 

A report recently released by the Center for Climate Integrity showed that oil and gas companies knowingly contributed to fueling conditions that led to climate change and higher insurance costs. 

The average annual home insurance premium across the country has gone up 24% over the last three years. In states where severe weather is more common, such as Florida, California and Louisiana, the rate increases have been even higher. 

In some states, insurers are pulling out of specific high-risk areas entirely or raising rates to unaffordable levels, forcing homeowners to find policies with insurers of last resort. 

Scientists have long linked dirty fuels such as gas and oil to the extreme weather we are now experiencing. Coal, oil and gas all release carbon pollution trapping heat in the atmosphere which leads to higher temps in the summer, longer droughts, more extreme weather, hurricanes and flooding. 

As severe weather becomes more common it damages homes which leads to claims and higher costs for insurers who pass that increase on to policyholders via higher premiums. 

The report released by The Center for Climate Integrity makes the argument that the insurance premium crisis is unjust. Average families are paying the price of climate change while giant energy companies continue to make record profits.

“Despite knowing the harms of their products, the oil and gas industry engaged in a decades-long campaign to deliberately sow doubt about the role of fossil fuels in causing climate change,” said the report.  

As the cost of insurance continues to rise policyholders and politicians are starting to push back, seeing compensation from energy companies for the pollution and climate damage they have caused. 

On a more local level, homeowners can help lower their insurance costs by upgrading their homes to make them more resilient to storms. Impact resistant shingles, fire resistant landscaping and other energy-efficient upgrades can help both the planet and your pocketbook. In many states, these upgrades may qualify for state for federal incentives. 

Here are a few other tips for keeping your insurance premium affordable:

• Shop your coverage: Insurance companies rate risk differently which can result in dramatic differences in premium quotes. Shop your coverage on a regular basis, getting quotes from at least five national insurers is recommended by industry experts. 
• Raise your deductible: The higher your deductible the lower your premium. If you can afford to double your deductible, you should see a major rate reduction. Always choose a deductible that you can easily afford in the event you have to make a claim on your policy.
• Discounts: Insurers offer lots of discounts so make sure all available discounts are being applied to your policy. Upgrades to your home such as impact resistant roofs and monitored burglar alarms will usually lower your insurance costs so consider upgrading your home. Check with your insurer for upgrades that qualify for a discount.