Author: William Brown

Is Hawaii’s insurance market prepared for the growing wildfire risk?The recent wildfires in Maui, Hawaii, have raised concerns among insurance companies, prompting them to reevaluate their approach to coverage in the state.Hawaii has long been regarded as a low-risk and profitable market for insurers, but the devastating Maui fires, which resulted in estimated damages of $4 billion to $6 billion, have forced insurers to reconsider their stance.While Hawaii’s insurance market remains more stable than that of other states, the wildfire concern is prompting insurers to rethink their strategies.As they assess the damage, insurers are contemplating the possibility of raising rates…

What impact does extreme weather have on the insurance market?Homeowners in the United States are facing a new challenge as property insurance coverage diminishes due to increasing climate risks.The economic consequences are substantial. 2022 saw over $165 billion in extreme weather damages and expectations are that this will only increase.Climate change-related events could reduce U.S. GDP by up to 7% by 2050 and potentially much more in the long run, as housing contributes significantly to the U.S. GDP.Insurance companies are grappling with unprecedented losses. For homeowners, property insurance plays a crucial role in managing financial losses caused by disasters, although…

How do dogs affect your homeowners’ insurance rates?It have proven that insurers can look at your situation at home and give different rates.Whether you live in a more hurricane prone area, your home is 100 years old or you have just had a fire, there are a lot of ways you premium can change.But, did you know that having a certain breed of dog can also affect your homeowners’ insurance rate?Pittbulls, Rottweilers, Dobermanns, and some others are considered dangerous breeds. They are strong, often aggressive by nature and have a high bite incident rate.For this reason, they are also likely…

Where Is the billion coming from?The total claim in 2022 was around 952 million USD, by lightning damage alone.The amount of claims of damage done by lightning actually increased last year, although the cost per claim actually reduced slightly.This means that the damages are less severe, but if they were as severe as other years (or the claims were paid out higher), the number would most likely succeed 1 billion USD in a year.Hot and moist air coming from earth results in different natural catastrophes, one of which is lightning. The warming of the earth has contributed to the storms…

What are the wildfires in Canada about?Canada has a wildfire season annually. A lot of acres of forest will catch fire due to droughts and the country is well equipped to deal with this.However, in 2023, the wildfire season has seen unprecedented drought and the biggest fires ever. A total of 5 million hectares of land has been destroyed already.This includes the destruction of many homes in the natural areas of Canada, where over 200 homes have already been completed burnt by the wildfires.How have the wildfires impacted homeowners’ insurances in the US?Usually, becuase the wildfires are not so massive,…

What is happening on the homeowners’ insurance market?As mentioned last week, global climate change is a big issue in some states in the United States.A couple of states in particular, among which California, is considered the highest risk state for homeowners to live in due to the natural disasters happening increasingly.This has led to the decision of the biggest insurance company, State Farm, to stop serving customers any new or renewed homeowners’ insurances.This has lead to many people owning homes in a high-risk area and not being insured. Once these homes get hit with natural disasters, that could lead to…

What is Citizens’ position in the homeowners’ insurance market in Florida?Citizens Property Insurance Corporation, commonly known as Citizens, is a not-for-profit government entity created by the state of Florida to provide property insurance coverage to residents who are unable to find coverage in the private market.Citizens was established in 2002 in response to the challenges faced by homeowners in obtaining affordable insurance in the aftermath of several devastating hurricanes.Historically, Citizens has played a significant role in the homeowners’ insurance market in Florida. At times, it has been one of the largest insurers in the state, insuring a substantial number of…

Why is California a problem for home insurances?As inflation drives up pricing for construction, reconstruction and cleaning services, costs for home insurers is going through the roof.Add to that, the fact that California has been hit by several wildfires, flooding and other natural disasters  and insurance companies are facing massive claims.It simply has become unbearable for insurers to bare the costs for their insurers as the state has become a draining cost for companies.Last year, California passed regulations that offered residents in CA discounts on their insurances and benefits to their policies. This has also not benefited insurance companies to…

What does the home insurance premium average measure?When we talk about home insurance costs in the United States, we measure the average pricing. This means that we talk about all 50 states at once.The home insurance premium average, therefore does not measure if one specific company raises their prices, but it does take it into account, as well as the different policies that the people are paying for.This gives a good overview of the state of the home insurance market in the United States, but could be not representative for your specific area.In the last couple of years, the area…

What is flood insurance used for?Flood insurance is often used to protect their properties and belongings from the financial losses associated with flooding.Standard homeowners’ insurance policies typically do not cover flood damage.While they may provide coverage for certain water-related incidents like burst pipes or roof leaks, they exclude coverage for natural flooding caused by heavy rainfall, hurricanes, storm surges, or overflowing rivers.Therefore, to safeguard against flood-related losses, individuals often buy separate flood insurance coverage.Flood damage can be extremely costly to repair, as it can cause structural damage, destroy personal belongings, and lead to significant restoration expenses. Flood insurance helps policyholders…