Rising homeowners insurance premiums are attracting retirees

“The building materials themselves are lending them more catastrophic losses,” said Jared Carillo, fund account manager at SmithBrothers, an insurance brokerage firm in Connecticut. Materials used in construction today include many synthetics that burn faster and hotter, such as chipboard, spray foam and insulated wire, he said.

The open floor plan is another culprit, Carillo said: “A fire that started in the kitchen would cause more damage on the first floor.”

Some of the weather changes being watched by the insurance industry, such as the northward drift of “Hurricane Alley”, are gradual changes. Others — like the drought that has exacerbated the massive wildfires in the western United States — have reached the inflection point much more quickly. Rauch says that during the 1980s, the average annual insured loss in the United States from wildfires ranged from $1 billion to $3 billion.

“This is expected to happen in the future,” he said.

That changed in an instant. “In 2017, for the first time, insured losses were somewhere in the region of $16 billion,” Mr. Rauch said. “It was a huge leap, and 2018 is essentially the same.” After a moderate fire season in the West in 2019, 2020 is yet to bring another major wave of losses, around $11 billion.

It’s proof that even the fastest companies can be surprised how quickly conditions can change. Mr. Rauch said that in just the last 4-5 years, wildfires have brought about significant changes. “The loss situation is completely different than it was decades ago,” he said.

Real estate and insurance experts say this is especially problematic for those who put their roots down decades ago with the expectation of growing old in those homes and neighborhoods, only to find that the face the ground under their feet has moved.

“I have retirees here,” said Patrick Brownfield, personal risk advisor with insurance brokerage Hub International in Jackson, Wyo. This leaves homeowners with few options. “They’re going to spend $20,000 a year on top of their fixed income, and now they can’t pay for insurance because all the equity is in their home,” Mr Brownfield said.

https://www.nytimes.com/2022/02/04/business/retirement-climate-change-homeowners-insurance.html Rising homeowners insurance premiums are attracting retirees

Fry Electronics Team

Fry Electronics.com is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@fry-electronics.com. The content will be deleted within 24 hours.

Related Articles

Back to top button