A Change In Climate Could Mean A Change in Insurance Policy
As you know, we cannot control the weather. Each year, Minnesotans experience extremes in climate: harsh winters, hot, humid summers, and everything between. We are no strangers to crazy weather, but do your insurance policies match these changing needs? You may be over– or under-insured for potential weather risks.
Should You Consider Changing Insurance?
Yes! You should especially consider looking at the coverage you have in your personal and property insurance policies and examine them with climate change in mind.
Many farmers have had a tough year due to drought conditions. Also, homeowners and renters alike have encountered additional risk and property damage. Unfortunately, many fail to account for flooding, hail, and other natural disasters while making coverage decisions.
Because of the changing climate, insurers have adapted their risk forecasts, adjusting premium structures and claims handling practices to remain competitive. However, it’s essential that you also do everything you can to be fully protected. We can help you take advantage of the competitive insurance market.
Changing Your Insurance To Meet The Changing Times
For decades, property insurance underwriters have relied on catastrophe modeling to predict the frequency and likelihood of catastrophic losses. Unfortunately, it is getting harder for any model to predict drought, hailstorms, or flooding in a given year. A hundred-year flood has the potential of coming sooner than later.
Consider whether you have the right insurance for a potential flood zone? Flood insurance requires an individual policy in most cases. Even if you haven’t historically been in a flood zone, you may want to add this coverage before it becomes a problem. Preparing ahead of time could save you thousands of dollars in the long run.
What To Expect from Insurance & Climate Change
Undoubtedly, increased risk means a rate increase. Since the cost of paying out on additional claims falls onto insurance companies, they must make changes to their plans’ rates according to how often and how many specific claims are filed. So you can see it becoming a cycle of cost increase.
How Do I Insure for Climate Change?
There is no exact science to preparing for unexpected weather. However, you can ease your mind by speaking to one of our insurance professionals. Ask us about what changes in the climate could mean for you, your farm, your property, including your automobile, marine equipment, or rental property.
While you are the only one who knows what you need for peace of mind, we can provide expert advice about your property, and we are here to help guide you to affordable and reliable insurance.
For more information or to determine how climate could affect your insurance, contact Herman Insurance. You can also request a quote or call (651) 674-4472. We have decades of experience and can provide you the best insurance options in the North Branch, Isanti, and Rush City, Minnesota area.