Climate change affects insurance [letter] | Letters To The Editor

An analysis of my annual homeowner’s insurance policy showed an incredible increase of 38% for 2024.

The fact is that real estate prices have taken an upswing in the past year.

A recent statistical analysis from Redfin states that the median sales price per square foot of housing in Lancaster County has increased by about 8.5% from last year.

I live in a suburban house built in 1998, so my insurance company has estimated that my household value, and therefore my insurance costs, have escalated by 9%. Based on several observations of sales in my area, that amount seems reasonable.

In addition, my insurance agent tells me that there has been a general 5% rate increase because of increasing basic costs of doing business. That is also reasonable, as our own basic costs, such as utilities, have increased more than that.

So if I add those two numbers together, I get about 14%. That seems OK as well.

So my real question is how the underwriters went from a 14% rate increase to a 38% rate increase!

The general answer from my agent: “You need to realize that the risk factors in Lancaster County have increased significantly. Our risks of tornadoes are being recognized as higher than at any other time in recent memory.”

There you have it: I am being impacted by a 24% climate change surcharge on my homeowner’s insurance.

Steve Franz

Upper Leacock Township