Weather is hard to predict, even with new technologies and smarter computers, insurance companies have to rely on historical data to predict the future. And if they are using recent history, that future doesn't look so bright for the cost of home insurance. (In 2010, more natural disasters hit in a single year than any other over the past 60 years! Source: FEMA) (The chart to the right shows a county-level map of federally-declared weather-related disasters between 2006 - 2011. Tornadoes and severe thunderstorms in the Midwest, and heavy rains and snows from Nor'easters, hurricanes, and other storms in the Northeast gave those two regions the most disaster declarations.)
For homeowners in more affected areas, that likely means facing insurance rate hikes in the future. It's only logical, of course, that the more risky a certain area is deemed to be, the higher the insurance premiums charged by insurers in that area. Florida is a prime example where insurers have dropped coverage coverage completely since Hurricane Andrew hit in 1992.
Have No Fear
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