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The Insurance Climate May Be Changing with the Weather

The times, as the song goes, are “a changin’.” So is the weather. Like it or not, climate change is a reality. In many areas, especially in Minnesota, the types of weather events that people have come to expect, and the types of preparation that they do for those weather events, are no longer a given. Many farms, in fact, have had a tough few years dealing with their crops. Businesses and homeowners have encountered additional risks as well that they never knew they needed to account for. Right along with climate change, it seems, is a change in the way insurance costs and claims are being dealt with.

Consider the fact that hailstorms and flooding are becoming more and more commonplace. Do you have flood insurance? Are you relying on the idea that the area you are in has (historically) not seen much flooding? Is that idea really a given at this point? The reality is flooding is becoming more common in many areas where it has not been seen previously. Flooding is one issue that requires its own policy in most cases. What that means for the policyholder, unfortunately, is that if they don’t have flood insurance, they could be left without a way to pay for repairs or recoup losses in the event of a flood.

To put it further in perspective, when risks increase, so do insurance rates and claims. If a piece of property (or a vehicle) you own is suddenly at risk of something that it simply didn’t face before, rates are inevitably going to go up. If hail becomes more common, more vehicles will be damaged, more claims will be filed, and more costs will be incurred by the insurance companies. Those costs will drive up the cost of premiums. The cycle continues.

So what can you do? Well, prepare for unexpected weather. Flooding and hail are two things becoming more common, so take some precautions against them in advance. In terms of mitigating risk in other ways, speak with an insurance professional about what those changes could mean for you. Can you afford for rates to go up? Can you afford to stay in the dark about what is changing in your area and your particular situation when it comes to the weather?

For more information or to find out how climate change could affect your insurance, you can reach us at or call 952-941-9418. Our staff of professionals has been dealing with this for years, and we are ready to help you deal with it as well.

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