CHICAGO (WLS) — From the wildfires raging in Southern California to devastating floods on the eastern seaboard, the impact of those disasters is being felt across the country in the way of rising insurance premiums.
“Premiums are going up. I’m here in Michigan; mine went up 18% this year. I just got my renewal,” said Curtis Goldsborough, with National Insurance Inspection Services.
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Goldsborough said extreme weather events are contributing to rate increases.
He said that’s how insurance companies generate the money needed to pay out billions of dollars in claims.
Some estimates have the wildfires costing the insurance industry nearly $40 billion.
“When your business expenses in one event spike into the billions of dollars, even for these very large insurance companies, that has a significant effect on the bottom line,” Goldsborough said.
Next month, Northbrook-based Allstate will increase rates by 14% for a portion of Illinois homeowners.
A spokesperson cited more frequent severe weather and higher repair prices, leading to an increase in insurance claim costs.
Goldsborough said this trend ultimately has to change across the insurance industry.
“Insurance, moving into the future in a sustainable fashion, is going to have to be a more collaborative effort between policy holders and insurance companies,” Goldsborough said.
In the meantime, Goldsborough said homeowners can take their own steps to shore up their homes to try to minimize their risk of damage or loss.
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