If the insurance companies that provide homeowners policies are blaming climate change and flooding risks, that is not a valid justification. Those policies don’t cover flooding damage. The only coverage available for floods in the coastal and river/creek parts of inland areas comes from the national flood insurance program. On the Outer Banks the insurance companies also will not insure against wind and hail damage. The NC Underwriting Insurance Association is the only viable source for such coverage. I suspect the more feasible justification for rate hikes comes from the inflation in labor and materials in construction that is required for coverage of fire, plumbing, and more conventional risks. Of course 42% is probably far higher than the real inflation risks for these companies.
If the insurance companies that provide homeowners policies are blaming climate change and flooding risks, that is not a valid justification. Those policies don’t cover flooding damage. The only coverage available for floods in the coastal and river/creek parts of inland areas comes from the national flood insurance program. On the Outer Banks the insurance companies also will not insure against wind and hail damage. The NC Underwriting Insurance Association is the only viable source for such coverage. I suspect the more feasible justification for rate hikes comes from the inflation in labor and materials in construction that is required for coverage of fire, plumbing, and more conventional risks. Of course 42% is probably far higher than the real inflation risks for these companies.