The verdict is in. The case is closed. Homeowners insurance rates in coastal states will continue to rise. Here's why:
- Hurricanes are becoming more frequent and more severe.
- Coastal development continues to boom - putting more insurable property at risk.
- Insurance companies are being forced to pay ever increasing costs for their own 'Umbrella-like' catastrophic policies.
- Insurance companies pass these costs along to policyholders.
If you live in Florida, you know this situation first-hand. Soon after Florida got hit by five storms in one season, there was only 1 (one) insurance company willing to insure homes in Florida: Citizens Property Insurance Co. For those of us that live in the second-most hurricane-prone state, North Carolina, we should try to learn from Florida's lessons.
What can we do? Here are some of my ideas:
More limited coastal development, stricter & more highly enforced building codes. Anyone out there have any other suggestions?
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