Insurance companies are providing inadequate coverage for those affected by climate-related natural disasters while also raising rates.

The Washington Post reported that insurance companies are increasing their premiums “in response to multiple climate disasters,” preventing people from rebuilding their homes after wildfires.

While many policy claims following the Los Angeles wildfires are yet to be ruled on, the actions of insurance companies don’t bode well for homeowners.

What’s happening?

The Washington Post used the 2020 CZU Lightning Complex fires and the 2021 Colorado Marshall Fire as examples of insurance companies failing to help most people rebuild.

In the former instance, less than a third of the homes lost in the fires were rebuilt. The Marshall Fire had a similarly devastating result. Around 80% of homeowners had insurance policies that wouldn’t cover the cost of rebuilding.

There’s a reason for such low coverage. Colorado Insurance Commissioner Michael Conway told the Post, “When you see insurance premiums increase to deal with climate change — you’re going to see people react by decreasing their coverage.”

Since insurance is already so expensive, many people won’t be able to shell out additional money.

This news is heartbreaking for homeowners. Nicole Anderson, a California resident interviewed by the Post, said she and her husband were “devastated.” Even people in Iowa are affected by the fallout from the L.A. fires as insurance companies across the country adjust their policies and reduce coverage.

The warming of our planet is a proven contributor to frequent, intense wildfires. According to the U.S. Environmental Protection Agency, “climate change threatens to increase the frequency, extent, and severity of fires through increased temperatures and drought.”

Why is reduced insurance coverage concerning?

When home insurance covers less, it makes it harder for people to recover after disasters.

While the exact costs depend on a house’s size and location, underinsured or uninsured people have to pay for construction costs out of pocket. This can amount to over $500,000 or even millions.

And with the planet overheating, extreme natural disasters will only increase in severity and frequency. It’s about more than just wildfires. Floods, tornadoes, and hurricanes are also becoming more intense, per the World Wildlife Fund.

If people can’t afford to insure their houses and lose them in disasters that are entirely outside of their control, what can they do? Where can they go?

What’s being done about this?

Despite everything, people are determined to stay and make it work. William Chandler, a California resident whose late grandfather’s house burned down in the January wildfires, told the Post, “We’re definitely going to stay. I know it’s going to be a long road, but that would be my grandfather’s wishes.”

If you want to do your part in slowing the Earth’s warming, try to curb your use of dirty fuels that pollute the atmosphere. For example, if you’re running errands nearby, walk or bike instead of driving a gas-guzzling car.

Embracing renewable energy to power your home is another excellent way to lower your pollution, and it can slash your utility bills in the process.

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