Soaring home insurance costs could force Americans out of states with the highest price tags, according to a recent report. Home insurance premiums for a $300,000 property in the U.S. increased 12% in 2023 to an average $1,770 per year, the Insurify report said. However, homes in areas at risk of more climate-related damages tend to pay higher premiums, while homes in less disaster-prone areas pay less.
The higher cost of covering climate-related damages has pushed several insurers to leave markets at higher risk of natural disasters, according to a second report by Insurify. In the last few years, Allstate, American International Group, Inc. , Farmers, Nationwide, AAA Insurance and State Farm have either pulled or reduced coverage in California, Florida and Louisiana.
Beyond moving to a low-risk state, homeowners can take these steps to disaster-proof their homes, lower insurance costs and protect their investments, according to Insurify. Insurers recommend trimming trees and branches away from the house, inspecting a home's roof to repair loose or damaged shingles, securing loose gutters and sealing gaps and cracks around windows and doors to prevent water intrusion. These are all low-cost ways to help reduce potential damage to homes.
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