For Consumers

How climate change affects your insurance

Climate change is causing droughts, intensifying wildfires, and increasing severe weather. That means more heavy rain, hurricanes, tornadoes, and floods.

Natural disasters can destroy homes, cars, businesses and crops. That leads to an increase in the number and severity of insurance claims.

Some insurers have now stopped offering certain types of insurance coverage. Many insurers have limited the types of coverage they offer. This has led to higher premiums, to the point of being unaffordable to some consumers. As a result, some people buy policies that don’t provide as much coverage as they need. Others go without insurance.

Climate change is not just a property and casualty issue. It can also affect consumers’ health. Wildfires hurt air quality, which affects everyone. That can lead to more medical conditions, which in turn increases health insurance claims.

What can I do about climate change?