The prevalence of natural disasters in recent years, unpredictable weather patterns and high property damage are causing property and homeowners insurance providers to reconsider their offerings.
While consumers are concerned about the potential expense they face in the event of such damage or are coping with what has already occurred, insurers are trying to reassess the risks they are facing and how much liability they can afford. Reuters reports that some coverage providers are pulling out of particularly high-risk states entirely, including prominent companies deciding not to renew existing policies in Alabama and North Carolina.
Certified risk managers, analysts and industry stakeholders are looking at the possibilities open from the current situation. States like Florida and Texas already have average homeowners insurance premiums higher than $1,400 per month. With commercial insurers less willing to operate there, the state is providing policies to about 1.5 million properties.
Some firms are also reviewing policies in terms of how likely claims are and what size they are when they consider renewal, the news source notes. These circumstances could lead to significant changes in the marketplace over time, as insurers, consumers and government officials try to balance financial necessities.