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And possibly going into the midterms.
More so thatinterest rates.
Florida in particular is going to have huge problems.
However, this process is often slowed by claims adjustments, litigation and sometimes claims denials, Breier said.
Since paying out the claims resulting from large-scale disasters is so expensive.
Insurers may increase home insurance rates to help replenish their reserves.
State Farm also dropped about 1,600 policies in Pacific Palisades.
This can leave homeowners stranded.
Private insurers are required to fund it and it is very close to running out of money.
This situation is reflected in California, Florida and throughout the country.
Insurance companies use very similar processes to assess risk and respond to claims in both states, Breier explained.
In Florida, insurers are already limiting coverage, imposing stricter filing deadlines and capping payouts, he said.
Even if youre not in a high-risk area, your insurance rate might be impacted.
Dugan-Knight predicted that the Los Angeles wildfires will accelerate forces that were already in the works.
Thats partially because its extremely difficult to predict climate changes impact on natural disasters.
These trends are advancing faster than scientists expected, he said.
So, pricing the risk correctly is no small feat and at the moment insurers are not keeping up.
According to Dugan-Knight, disasters in one state can affect home insurance in other states.
For example, Floridians might be an easy target for higher rates because they face significant natural disaster risk.
This makes it easier for insurers to raise rates, he explained.
Dugan-Knight suggested that homeowners explore ways to lower their homes risk of damage from natural disasters.
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