It’s a sight no homeowner ever wants to see.
When Leigh C. of Black Forest, Colorado, opened her insurance bill, she was in disbelief after her renewal rate spiked from $3,767 to $8,361.
“I was like, oh, my gosh, is that [a] three or an eight?” she told CNBC Select.
Unfortunately for Leigh and homeowners across America, skyrocketing insurance costs are part of the new norm.
According to a report from Policygenius, premiums jumped by an average of 21% across the nation between May 2022 and May 2023 after insurance companies had to dole out $99 billion in claims filed for natural disasters last year.
A primary factor contributing to the inflated cost is the overheating of the planet, and with the intensity and frequency of natural disasters consequently soaring, there is no telling how high prices could go.
Every state in the United States experienced at least a 10% rise in the average premium from May 2022 to May 2023, per Policygenius.
While Leigh’s insurance premium increase of 122% was exceptionally high for Colorado, recent wildfires pushed the state to the second-highest figure in the country at 30%, according to Policygenius.
To make matters worse for homeowners, some insurance companies have pulled out of states susceptible to the devastating effects of natural disasters.
Per NOLA.com, 11 insurance companies have gone insolvent in Louisiana since 2020, joining the 12 carriers that had already submitted notices to withdraw from the state.
While Leigh hasn’t had to contend with her insurance company abandoning her, the alternative isn’t much better.
“I called them to see if that was a mistake,” she told CNBC Select.
“We love Black Forest,” she continued. “There are birds and sunshine and Ponderosas, and we have a creek that runs through the side of our property. But I don’t know if we can stay here if we have to pay that much for insurance.”
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