Unpredictable Weather Weighing in on Insurance Coverage

If you look back on the last few years, the weather has been quite unpredictable across the US. Typically states like Michigan have always had some bit of unpredictability when it came to the weather. Residents would use weather in casual conversation and state how one day it could be snowing and the next it would be a mild Spring-like day, and then say, “That’s Michigan for ya.” However, recently, this erratic weather has become more and more prominent throughout the US and in other states much more severe weather than in Michigan. I would consider it to be consistently inconsistent. What does this unpredictable and potential severe weather mean for home owners and insurance companies? Well with natural disasters on the rise, in some states, insurance companies have been decreasing the amount of financial responsibility offered to customers in regards to natural disaster damages. Some are even raising rates as they are cutting coverage.

It has been reported that in states such as North Carolina where this type of weather is recurring, insurance companies are refraining from any new homeowner policies and not renewing their current client policies unless they were grouped with an auto insurance policy as well. Also last year, Alabama had $11 billion worth of damage due to tornadoes. 73,000 property insurance holders were informed that their policies would not be renewed. There are insurance companies that will offer policies in these types of conditions. The best way to know if you are getting the best rate for your coverage is to shop around, do your homework, and compare. Study the policies carefully and make sure important coverage points are not left out.