Insurers have begun raising rates, restricting coverage or pulling
out of some geographic areas after historical losses from increasingly
extreme weather here in the US. According to a
report from the New York Times State Farm stopped accepting
applications for most new insurance policies in California because it
had to improve the company's financial strength in response to
rapidly growing catastrophe. Exposure. State farm insures more
homes than any other in California. And this follows
devastating losses from wildfires in the state. Dating back
to 2017, something similar happened in Florida following Hurricane
Andrew in 1992. The devastation bankrupted many insurance companies
causing others to pull out of the state. A
private market place made up of small insurance companies backed
by a state mandated company replaced them, but that
company won't insure homes worth more than$700,000 or up
to a million in some areas. Now, Fema's
national flood insurance program established in the late sixties made
flood insurance more affordable to more people. But in
recent years, premiums have continued to rise in response
to losses from worsening storms. Now the New York
Times reported FEMA is pricing rates equal to risk which
could more than double costs in some cases. No
hurricane season starts today. And although scientists are predicting
an average season, storms during average seasons in the
past have done catastrophic damage to cities along the US
coast last year. For example, hurricane Ian in
September devastated Fort Myers area. And then hurricane Nicole
followed in November to wallop Florida again. According to
CNN, an average season means about 12 to 17
named tropical storms, 5 to 9 of which could
become hurricanes. There's no telling for now if any
will make landfall, El Nino is a weather pattern
that cycles about every 2 to 7 years and is
characterized by warmer than usual sea surface temperatures and higher
winds over the El Nino is expected to manifest in
the next couple of months. And when combined with
climate change, researchers expect a stronger El Nino event
, this could mean more rain, more extreme heat
and droughts as well as bigger storms. Although for
now, scientists aren't quite sure what these side effects
will show up. And experts say the best way
that officials can help homeowners insurance costs stay down amid
rising risk is by reducing the risk that they face
altogether. That means things like implementing tougher building standards
in places that are at higher risk of hurricanes,
controlling development in places at risk of wildfires or even
forcing relocations for communities in dangerous areas.