By comparison, North Carolina’s insurance market looks pretty strong. No insurance company has left the state since 2008, and homeowners pay an average of $2,100 a year, which is a lot but still beats the sky-high premiums in states like Florida, California and Texas. I’m avoiding it.
“What traditionally happens is that homeowners insurance rates go up by 8 to 9 percent every few years,” Hornstein says. “That keeps the market stable, especially when it comes to the coast.”
However, as natural disasters of all kinds increase, it is difficult to find a way forward for the insurance business as usual. The NFIP is making a series of changes to update the way it calculates flood insurance rates, but it has become a political minefield in that it could expand the number of homeowners required to carry insurance. facing. Additionally, many homeowners are seeing their flood insurance prices increase as the NFIP uses new climate models to adjust existing floodplain insurance premiums.
Many experts agree that private markets need to somehow reflect the true cost of living in disaster-prone areas. should The costs are higher when people move to cities where a storm is more likely to wipe your home off the map. In Florida, one of the fastest growing states in the country, the costs of climate change do not appear to be a deterrent, and coastal areas such as Panama City, Jacksonville and Port St. Lucie are It is growing rapidly. (Some studies suggest that the mere existence of the NFIP protects policyholders from the real costs of living in flood-prone areas.)
Asheville, in the heart of Buncombe County, was once hailed as a climate haven safe from disaster. The city is currently shaken by Helen’s influence. For many homeowners, small business owners, and renters in Western North Carolina, the effects of Helen will be life-changing. At best, your FEMA payments may amount to only a fraction of your home’s value. Car insurance generally covers all types of damage, including floods. Although this is a small relief, it is not enough to offset the loss of the family’s major assets.
“The people who were on the shore, at some point afterwards, nth When the storm comes, they start getting messages,” Hornstein said. “But for people in the western part of the state, this is truly Armageddon. And they can certainly be forgiven for not understanding the key points of these arcane contracts until now.”
Marlette says there are insurance models designed to better withstand the challenges of climate change. For example, New Zealand offers insurance that covers all types of damage that can happen to your home. Although these policies are increasingly priced to suit different types of risks, there is no chance that a homeowner will encounter a climate disaster that is not covered by their existing policy. But given the long history of a fragmented system, it will be difficult for the U.S. system to undergo the major overhaul it needs, he said.
“I sound very pessimistic,” he said. “I’m usually an optimistic person.”
(Tag Translation) Science
