From stronger hurricanes to atmospheric river storms to explosive fires, weather extremes are becoming more frequent, not only uprooting lives but causing billions of dollars in damages. Losses from extreme weather are becoming staggering and the insurance industry is shifting from reactive to proactive—much to the chagrin of consumers.
cutting coverage
Roughly one-third of the U.S. population—almost 100 million people—now reside in the Wildland Urban Interface (WUI)—the divide between urban and rural areas where sprawling communities are sprinkled between forests. Population growth has boomed in the WUI in the past 30 years, growing almost 50 percent since 1990.
Unfortunately, these areas are highly susceptible to wildfire ignition and spread, tearing through communities and causing devastating damage. Insurance companies have decided it’s just not worth it anymore and are pulling the plug on coverage in wildfire prone areas. No, it’s not just California. The contiguous states with the greatest number of houses in the WUI are:
- California
- Texas
- Florida
- North Carolina
- Pennsylvania
And the states with the highest percentage of houses in the WUI are:
- Maine
- New Hampshire
- Vermont
- West Virginia
- South Carolina
- Montana
- Wyoming
- New Mexico
- Alaska
Raising premiums
Even if insurance carriers will still write a policy, it doesn’t mean it will come cheap. Premiums are at a premium in high-risk areas, which doesn’t just apply to fire-prone areas. Sea-level rise endangers coastal communities. More severe hail damage threatens agriculture and property in tornado alley. Stronger hurricanes will put a target on homes in the South.
With greater risk comes higher costs. Insurance premiums rose 40 percent faster than inflation from 2017 to 2022. Severe thunderstorms and tropical cyclones/hurricanes accounted for the vast majority of insured losses from 2014 to 2024—except in 2017, 2018, and 2020, which were marred by devastating wildfires and accounted for 16 to 25 percent of total losses.
So how are people adjusting for increased cost? Some are foregoing insurance altogether, a risky proposition given the skyrocketing cost of building. Others are simply being priced out of the housing market due to a combination of increased home prices and associated costs—like insurance—to carry the loan.
What can you do?
You might be left wondering, is there really anything I can do? To a certain extent, yes. Research risk factors before purchasing a home and know how to protect and respond to weather extremes in your area.
In California, check if your home is close to fault lines or areas of known land movement. A Rancho Palos Verdes community is reeling after back-to-back seasons of above-average rain due to atmospheric-river type storms accelerated land movement to up to a foot a week by 2024, effectively rendering their properties uninhabitable.
Flood zones aren’t just for beachfront property—ensure the property you’re planning on buying isn’t in a flood plain or know how to respond and best protect your property should the worst-case scenario occur. Unfortunately, this information isn’t readily available to the public. However, a real estate agent should be able to help, but a consulting meteorologist can definitely help assess the risk.
Live in an area susceptible to severe thunderstorms? Most importantly, know how to protect yourself and where you should go during a storm—and outside to take video isn’t the answer! Think of how to protect your property, as well. Look for a home with a garage and maintain trees surrounding your house and look into the health of the tree trunk to gauge risk of uprooting.
If you live in or have to buy a home in the WUI, know about defensible space and vegetation management around your home, fire-resistant materials, and ideally look for a community with underground power lines.
the bottom line
You can’t protect against every weather hazard, but you can—and should—mitigate some risks.
