Homeowners insurance companies are increasingly in the crosshairs of extreme weather that has been associated with climate change, and their losses from resulting damage are on the rise.
You might already be seeing the effect. Erie Insurance, for example, has raised premiums to account for severe weather, says Joe Vahey, a regional vice president fpr Erie. The Pennsylvania-based insurer has developed climate modeling and risk analytics. These sophisticated models forecast weather risk down to the street level.
The Travelers Insurance Company says its risk analyses have led to writing fewer homeowners insurance policies in some areas and raising prices in others. The company wouldn’t provide specifics.
Travelers has also selectively imposed separate deductibles on standard homeowners insurance policies in areas prone to hurricanes and those at greater risk of tornadoes, and wind and hail damage.
