Have you noticed how the whole game of homeowners insurance seems to be changing lately and faster than ever? It's like we're all caught in this whirlwind (bad pun) of rising costs and unpredictable disasters, and it's hitting homeowners harder than ever before. Let's dive into what's going on.
Natural disasters used to be these rare, headline-grabbing events, but now, it feels like we can't go a year (or even a couple months) without hearing about some major hurricane, wildfire, flood, or tornado tearing through communities due to climate change. And guess who's left footing the bill? Yep, you guessed it – homeowners like you and me. And we don’t often live in places where these events occur, but we’re still footing the bill, because that’s how the homeowner’s insurance pool works. Here in Washington state, we skew closer to the average for annual homeowners insurance costs, but as the Pacific Northwest temperatures rise, do we face some of the same challenges that California does now with more urban wildfires?
With all these disasters happening more frequently and decimating communities, insurance companies are feeling the heat. They have to cover all the real estate damages, which means they're shelling out enormous sums in claims, and that means ever-higher premiums. But don’t think that just by moving, that you won’t have to pay higher premiums. You see, claims not only affect the property, but they follow you wherever you go. So, it’s more important than ever to carefully consider where you’re moving to, before you commit to homeownership.
But here's the kicker – it's not just Mother Nature we're up against. Insurance companies seem to have a lot of say in what goes down. They have lobbyists and lawyers and all sorts of folks working behind the scenes in government to get regulators to sign off on rate hikes and policy changes that might not be so great for us homeowners, and there’s not much we can do about it.
In Florida, hurricanes are practically a way of life, and in California, wildfires seem to be getting worse every year. And you know what that means for insurance? Yup, you guessed it again – premiums are through the roof. For some folks, it's getting to the point where insurance is just downright unaffordable. The average cost nationally for annual homeowners insurance is $2,377, but the average cost to Floridians is now over $11,000 with another hike on the way.
And you know what really stinks? Some people are left with no choice but to go without insurance altogether. Can you imagine? Living in a high-risk area with no safety net if disaster strikes? It's a scary thought, but for some, it's the reality they face.
Even if you don’t live in California, Florida, or Tornado Alley, it’s critical to get your homeowners insurance quote during your due diligence period when purchasing a home. Have an older roof? They could require that it be replaced to get insurance. Trees hanging over the property? They could require them to be trimmed or removed. Out of code electrical panel or wiring? They could require this to be remedied. These are all realities homeowners are facing as insurance companies find ways of reducing overall risk.
So, do your homework, ask questions and make sure you look at your home from an insurability perspective or it could cost you big. And if you're relocating to Washington, shop and compare homeowners insurance quotes, or ask your Realtor (me) and I'll steer you in the right direction.
As your resource for real estate in the Puget Sound, I welcome hearing from you.
https://erikmolzen.bhhsnw.com/Contact/erikmolzen
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