How El Niño Could Affect Home Insurance Costs Across America
The cost of destructive flooding in parts of the country could be passed on to policyholders, “though not quickly or all at once.”
A powerful El Niño weather pattern, expected to intensify this fall and winter, could significantly impact home insurance costs across America, according to experts. Meteorologists predict a strengthening El Niño, a natural climate phenomenon associated with warmer Pacific waters, will bring varying weather risks for different regions.
The West Coast, particularly California, faces a higher chance of heavy precipitation and flooding, while the Upper Midwest, Northern Tier, Southeast, and Northern Rockies may experience increased temperatures, heavy rain, flooding, and severe weather.
While El Niño typically reduces the risk of devastating Atlantic hurricanes, it can also lead to above-average rainfall along the Southeast and West Coasts, negating any benefits gained in hurricane-prone areas. The primary concern during this strong El Niño period is the potential for flooding, which could result in mudslides, high winds, and severe weather across the West Coast and Southeast.
Homeowners should be prepared for various risks, including roof and water damage, burst pipes, and debris damage. Many properties in flood-prone areas lack adequate flood insurance, with 86 percent of U.S. properties at high risk lacking coverage. This lack of insurance means most flood damage would not be covered by standard homeowners policies. Instead, it would fall on the National Flood Insurance Program (NFIP) or private flood insurers, while homeowners without flood coverage would be unprotected.
Experts advise homeowners to secure flood insurance through the NFIP or a private carrier, as FEMA risk maps may not accurately reflect the current threat. The 30-day waiting period for NFIP policies means it's crucial to purchase coverage before a major storm is forecasted. For Southern California, the main flood season is typically in winter, so planning ahead is essential.
While this year's "super" El Niño will not change NFIP policy prices, the potential for increased losses could still have a significant impact on home insurance costs.
Written by urgent.news from Newsweek's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
