Rise in natural disasters leading to increased insurance premiums

Rise in natural disasters leading to increased insurance premiums

With natural disasters appearing to become more common in the last decade, insurance providers are raising rates. According to a new analysis by the Insurance Information Institute, there were 850 occurrences that were considered “natural catastrophes” worldwide – an increase from 740 in 2017 and up from 500 a decade earlier.
These disasters have topped $350 billion in damage over the past several years in insurance losses. As a result, homeowners are seeing an increase in their premiums, particularly in areas considered at a higher risk of being impacted by such devastation.
Data from FEMA shows that California tops the list of states with the most disasters since 1955 with 313, well ahead of the Oklahoma ranked as the second most disaster-prone state with 192.
Today, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 percent.
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