![]() People wear protective masks as the Roosevelt Island Tram crosses the East River while haze and smoke from the Canadian wildfires shroud the Manhattan skyline in the Queens Borough New York City, on June 7. The increased frequency of natural disasters is a major factor driving insurers to pull out of some markets and for reinsurers to raise their rates, which affects the premiums everyone pays, according to the experts. “If you are a reinsurer, you have lost money for the last five years,” said Carletti. And reinsurance, the type of insurance that used by insurers to limit their risks, has gone up between 30% and 40% after years of losses in the industry, according to Matthew Carletti, an insurance industry analyst for JMP Securities. The insurance industry says that rebuilding and replacement costs surged 55% between 20. “The cost to insure new home customers in California is far higher than the price they would pay for policies due to wildfires, higher costs for repairing homes, and higher reinsurance premiums,” said a statement from Allstate explaining its decision to stop writing new policies last fall. The companies also blame limits placed on insurance premiums in some states, including California. Insurance companies also point to the rising cost of replacing homes, as inflation for building supplies and labor has soared. Two of the largest national insurers, State Farm and Allstate, are no longer writing new homeowners policies in California, partly because of the increased risk posed to homes by wildfires.Ĭlimate change isn’t the only factor. That's not getting better anytime soonīut Florida not the only state where natural disasters are causing insurers to pull back from the market. (Photo by Gerardo Mora/Getty Images) Gerardo Mora/Getty Imagesįlorida's homeowner insurance rates are four times the national average. The hurricane brought high winds, storm surge,s and rain to the area causing severe damage. ![]() BARTOW, FLORIDA - SEPTEMBER 29: Talukder Mahtab surveys the roof of his business after it was hit by the winds and rain from Hurricane Ian on Septemin Bartow, Florida. ![]()
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