How Climate Change is Reshaping Your Insurance Needs
- Charlotte Burr
- Mar 27
- 2 min read
Climate change is no longer a distant concern or a myth to disprove. From increasing risks of floods and wildfires, to rising sea levels, and unusual storms, we are witnessing its effects first-hand. Whether you’re a homeowner, renter, or business owner, it’s time to rethink your insurance coverage. We will explore how climate change is affecting insurance policies and how to protect yourself with the right coverage.
Climate Change and Changing Insurance Policies
In recent years, natural disasters have become more frequent and intense. Insurance companies are taking notice of the rising risk and adjusting their policies accordingly. Be smart and informed about the changes.
1. Rising Premiums for High-Risk Areas
Due to severe weather events becoming more common, insurers are facing increased claims. As a result, they are raising premiums for homeowners and businesses in high-risk areas like coastal zones, floodplains, and wildfire-prone regions. If you live in an area susceptible to climate-related disasters, you may see your premiums rise.
2. Limited Availability of Coverage in High-Risk Zones
Seeing the potential damage caused by climate risk, some insurance companies are dropping out of areas that are most affected. For example, following the devastating wildfires in California in early 2025, several insurers discontinued coverage for properties in fire-prone zones. This makes it more difficult to find affordable coverage or secure a policy without high deductibles and exclusions.
What Can You Do to Protect Yourself?
1. Review Your Coverage Regularly
In times of uncertainty, the best strategy is to adapt. Regularly reviewing your policy ensures you’re aware of any exclusions, limits, or changes to your coverage. Don’t wait until disaster strikes to find out your policy no longer fits your needs.
2. Prepare Your Property
Take proactive steps to protect your property and reduce the likelihood of damage. Simple measures, like checking your roof condition, installing storm shutters, or having an evacuation plan, can make a significant difference in protecting your home or business.
At AZ Insurance Team, we understand the challenges of modern day. Our team of experts is here to help you review and adjust your policies to ensure you have the coverage you need to face whatever comes your way.
Independent insurance brokerage located in Tempe, AZ. We offer auto insurance, homeowners insurance, life insurance, renters insurance, commercial insurance…
Disclaimer: Coverage will vary on state, insurance company, and type of policy
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