The recent wildfires in California have left homeowners both inside and outside the state unsure about insurance coverage and rates. According to The Park Record, Utah homeowners may face higher insurance rates as a result of the climate crisis.
What’s happening?
Over the last few years, homeowners in Summit County, Utah, have faced rising wildfire insurance costs. According to The Park Record, some residents have lost all of their coverage.
Following the recent wildfires in Southern California, experts warn homeowners that rates may rise even further.
The Park Record explained that insurance companies use national risk assessment formulas to determine coverage. So, for Summit County homeowners, more wildfires along the West Coast means a higher risk.
While insurance companies used to evaluate homes individually, updated software now examines communities as a whole, assessing entire areas based on average statistics.
As rising global temperatures fuel more intense and frequent wildfires, insurance companies have used risk software to raise premiums or eliminate coverage entirely in high-risk areas.
“Some Summit County homeowners have seen their insurance prices double,” Clair Christoffersen, co-owner of C&W Premier Insurance, told the Park Record. “And homeowners associations are seeing increases as high as 300%.”
Why are rising insurance rates important?
The wildfire insurance situation in the West is yet another example of the impact of the climate crisis. As temperatures rise and extreme weather events become more common, homeowners in vulnerable areas struggle to keep their coverage affordable.
Worse, the continued use of dirty energy exacerbates the world’s warming temperatures, resulting in more powerful storms that threaten communities.
What’s being done about the climate crisis and increasing insurance rates?
Politicians have proposed new legislation to address Utah’s insurance crisis. State Representative Casey Snider, for example, introduced House Bill 48, which aims to retarget and outline risk zones using a state-run mapping system.
With state-mapping systems, homes would be evaluated based on individual neighborhoods and properties, resulting in more equitable risk assessments for homeowners.
Aside from policy action, residents can help combat rising global temperatures by making environmentally friendly changes. Simple lifestyle changes, such as avoiding single-use plastics, switching to clean energy, and shopping secondhand, can have a significant impact over time.
