This Newsletter Brought to you by David Clarke Insurance Agency. Inc. - Missoula, Montana
Global temperatures are on the rise, and extreme weather is one of the most pressing issues of our time. As the Earth’s climate changes, our insurance premiums will too. Here’s what you need to know.
Are insurance premiums going to rise because of climate change?
Global temperatures are on the rise, which is causing climate change. And with climate change comes an increased risk of natural disasters like hurricanes, earthquakes and wildfires. These disasters can cause extensive damage to property, and as a result, insurance premiums are likely to rise.
How big of a rise can we expect?
It’s difficult to say for sure, but experts believe that insurance premiums could go up by up to 50% in the next decade. This is because the risk of natural disasters is increasing as the Earth’s climate continues to change.
What can I do to protect myself?
Unfortunately, there’s not much that individuals can do to protect themselves from the effects of climate change. However, you can take steps to reduce your risk of a natural disaster happening in the first place. For example, you can make sure your home is properly insured, and you can have a disaster plan in place.
Disasters can happen anywhere in the world, so it’s important to be prepared. If you live in an area that’s prone to natural disasters, make sure you have an evacuation plan and some emergency supplies on hand. And if you do experience a natural disaster, make sure to contact your insurance company as soon as possible.
Flooding is becoming more frequent and extreme.
Flooding is a common natural disaster that can cause serious damage to property. Even a few inches of water can cause extensive damage, and many homeowners and renters insurance policies do not cover flood damage.
Homeowners and renters who want to protect themselves from potential flooding damage should consider purchasing a flood insurance policy. Flood insurance policies are available through the National Flood Insurance Program (NFIP), which is administered by the Federal Emergency Management Agency (FEMA).
The NFIP offers two types of flood insurance policies: standard and excess. Standard policies provide up to $250,000 in coverage for building damage and $100,000 in coverage for personal property. Excess policies provide up to $500,000 in coverage for building damage and $500,000 in coverage for personal property.
Flood insurance policies are not available in all areas. Homeowners and renters who want to purchase a policy should contact our office to see if coverage is available in your area and what the cost might be
In general, the higher your risk of flooding, and the coverage you need, the higher your flood insurance premiums will be. However, there are a number of ways to reduce your premiums, including raising your deductible and taking steps to reduce your risk of flooding. Please call our office at 406-542-6544 for more information.