Experts raise red flags as disturbing trend drives up home insurance costs — here's what's happening

The U.S. Federal Emergency Management Agency released data showing that the average property damage from natural disasters is getting worse.

What's happening?

Using data from 20 years of FEMA damage assessments, The New York Times reported that damage from severe weather is worsening in the West and South.

In the West, there has been a 15% increase in property damage costs due to fires over the past decade. The South, on the other hand, has been suffering from severe storms. According to the Times, the past six years have had some of the highest property damage averages in the last 20 years.

Experts have agreed with the Times' assessment of where trends are headed. One study cited by the Times estimated that "by 2053, we estimate that climate-exposed homeowners will be paying $700 higher annual premiums due to increasing wildfire and hurricane risk." 

What do these rising costs indicate?

This increase in property damage costs is indicative of a larger pattern. As the warming climate intensifies extreme weather, home insurance costs skyrocket, especially in more vulnerable areas.

In Oklahoma, for example, the average home insurance rate has risen over 51% in the last five years, according to one report. With home insurance premiums getting higher and higher, more people are left with no choice but to go uninsured, putting themselves at risk. In fact, according to LendingTree, nearly one in seven owner-occupied American homes are uninsured.

People with the ability to do so have been dropping their home insurance policies at higher rates across the country, especially in southern coastal areas where hurricanes are more common, the Times reported. Rates are also high in parts of California, which suffered from wildfires that reached record-high levels of destruction.

It's clear that the warming planet is taking a financial toll on America's homeowners. 

What's being done about the rising costs of disaster damages?

The U.S. isn't the only country grappling with this growing issue. Canadian advocacy group Investors for Paris Compliance recently filed a complaint in Ontario regarding insurance transparency. 

You can try a few strategies to lower your home insurance premiums. Consumer Reports recommends using bundle coverage and cleaning up your credit, among others.

How much money do you plan to spend on home improvement projects this year? Under $1K 😎 $1K to $5K 💵 $5K to $10K 💰 Over $10K 🤑 Click your choice to see results and speak your mind.

Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.