Severe weather events, such as wildfires, hurricanes, floods, and hailstorms, have become more frequent and more destructive. But for many homeowners, the real damage begins after the skies clear. That’s when they discover something even more devastating: their insurance coverage is not enough… or worse, not available at all.
Across the country, especially in high-risk areas, insurers are pulling back. Some are raising rates significantly. Others are refusing to renew policies or are exiting certain markets altogether. For homeowners trying to rebuild after a major storm, this can mean delays, denials, or financial shortfalls that make recovery nearly impossible.
One of the most significant issues is underinsurance. Many policies haven’t kept pace with inflation or rising construction costs. That means a home insured for $300,000 in 2018 might cost $400,000 or more to rebuild today but the policy hasn't been updated. When disaster strikes, the gap between actual rebuilding costs and insurance payouts can leave families with massive out-of-pocket expenses.
Even more concerning is the growing number of homeowners who can’t get coverage at all. In some wildfire-prone or flood-prone regions, insurers are becoming scarce. New policies come with sky-high premiums or reduced coverage, forcing homeowners to turn to last-resort state-run programs that may offer limited protection.
So what can homeowners do?
First, review your policy regularly. Make sure your coverage reflects current rebuilding costs, not just your mortgage or purchase price. This includes reviewing endorsements for items such as extended replacement cost or ordinance and law coverage.
Second, work with a local, independent insurance agent. They often have access to a wider range of carriers and can help you find creative solutions especially in harder-to-insure areas.
Finally, take steps to mitigate risk. Home improvements like fire-resistant roofing, storm shutters, or elevating a structure in a flood zone may make you more insurable and reduce your premium.
Nature is unpredictable. But your coverage doesn’t have to be. Taking action before the next storm could make all the difference when it’s time to rebuild.
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