How Does the Weather Affect the Cost of Insurance?

When your property is at risk for damage from severe weather, the amount you pay for premiums can increase. Windstorms, hail and wildfires are happening more often and more intensely. Those factors mean insurance companies have to pay out more in claims:

• More frequent weather events mean people are submitting claims more often.
• More intense weather causes more damage, so the claim amounts are higher.
• Ultimately, these increases in claims costs lead to insurance companies raising premiums. 

For a better understanding of the costs and benefits of your auto, home or business insurance coverage, talk to Farm Bureau. We can help you understand the way weather impacts your premiums and claims.

Weather Can Make It Harder to Find Insurance

The high cost of claims doesn’t just affect premiums. It can mean insurance companies stop offering policies in places where expensive claims are likely. For example, some insurance companies are no longer insuring new homeowners in California, because of the risk of wildfires. And insurance companies in Florida and Louisiana have run out of money after getting swamped by claims from hurricanes.

Safety Net Insurance Can Raise Premiums in a State

Some states offer insurance for people who aren’t able to get any property insurance coverage otherwise. Even if these programs aren’t funded by taxes, they can increase costs. 

That’s because states may be able to charge back insurance companies for their weather protection losses, and insurance companies may pass these expenses on to policyholders. People saw these types of increases after the 2025 Los Angeles wildfires and after Hurricane Katrina in Louisiana.

Your Premiums Could Rise No Matter Where You Live

While increases in premiums may be more likely if you live in a high-risk area, reinsurance means some of those costs get spread across a wider range. Reinsurance is the insurance that insurance companies buy to protect against their losses. When reinsurance costs go up, premiums can go up, too.

Weather Insurance Risks Can Limit What Policies Cover

Homeowners insurance policies generally don’t protect against flood damage, so if you’re at risk for floods, you likely need separate coverage. Now, some policies are also excluding damage from fire or wind. Policies that include coverage may have higher deductibles for certain types of claims or may limit the amount they pay. 

What You Can Do

While you can’t control the weather, you can take steps to reduce the damage it can cause.

Floods: Elevate your appliances, don’t store valuables on the lowest level of your home and use landscaping to help keep water away from your property.

Wildfires: Keep your roof clean, make sure flammable plants and items aren’t close to your home, and block embers from entering chimneys and vents.

Wind and Hail: When it’s time to replace your roof, choose roofing materials designed to withstand strong winds and resist hail damage. Secure outdoor furniture and objects that could get carried by wind, install shutters and anchor porch roofs.

A Farm Bureau Professional Can Offer Advice

At Farm Bureau, our agents live and work in your community. They know the weather risks you face and the insurance coverage you need to protect your property. Find an agent and schedule a consultation so you’re ready to face whatever the weather throws your way.