Skip to main content

Climate Science Prediction: How Updated Estimates Will Impact Homeowners Insurance Plans

Are global warming estimates too conservative? The scientific community has based global warming estimates on hard science, but because we have little hard data on previous examples of global warming episodes, they cannot truly predict the effects of global warming. In other words we may be able to predict the rate at which the earth is heating up within a few degrees centigrade, but we cannot truly predict what effect this will have on global conditions - particularly the weather.

If you want a recent example of just how little we can predict the effects of global warming, consider Hurricane Sandy that hit the east coast in October 2012. While it was traveling across water, it was regarded as being the largest hurricane in history. Even though hurricane Sandy brought New York to a standstill -- it was not as deadly as hurricane Katrina in 2005, primarily because the hurricane was moving so slowly that people had plenty of warning and places such as Coney Island were evacuated days in advance.

Two decades of scientific reports seem to have consistently underestimated the intensity of climate change and its rate. Even countries such as the United Kingdom, which has very mild weather when compared with the US, have experienced unprecedented flooding. The head of the climate analysis section, Kevin Trenberth, of the National Center for Atmospheric Research said, "We're underestimating the fact that climate change is rearing its head."

So how does this affect your home insurance plans? What you must first understand is that as official sources begin to align their future predictions of the damage caused by global warming, with the data they collect every time a new storm occurs - the price of for home insurance will go up. This is because insurance companies will have to raise the cost of their premiums to cover the higher rate of insurance claims that are going to be submitted in the coming years.

Global warming and the potential damage it is going to cause, is going to create a number of changes in the home insurance markets. This is why companies such as offer free insurance quotes, so that consumers need not be caught up in the ensuing anarchy by paying for their insurance quotes.

Let us take home insurance quotes for flooding as an example. In 2007, an IPCC report concluded that the Arctic wouldn't lose its summer ice until the year 2070, but recent data collected from the area shows that we might lose the Arctic's summer ice in just 20 years' time. As you can imagine, this is going to have a very large effect on the insurance premiums of some areas of the US that are already prone to flooding.

Scientists who study climate change have released conservative estimates with regards to the rise in sea level. For example, they claimed that sea levels would rise 2 millimeters per year, however, between the years 1993 through to the year 2006, sea levels rose by 3.30 millimeters per year. This means that areas which are not prone to flooding are going to start experiencing floods, which will affect the prices and scope of home insurance coverage offered by insurance companies throughout the country.

Jeff Mathis has been an insurance consultant for 20 years. He enjoys sharing his expertise on the subject by blogging for a variety of insurance and personal insurance websites.


Popular posts from this blog

Why it’s important to save for retirement

While retirement may seem far off in the distance for some, financial experts say you’re never too young to begin saving.  In fact, the earlier you calculate your retirement needs and start building your nest egg, the easier it will be to create a viable plan for the future. Many experts advise you begin saving a percentage of your income for retirement as soon as possible, no matter how little the contribution may be, as it’s possible the Social Security benefits millions of people currently depend on may be in jeopardy.

Low interest credit cards - how to make them work for you

Credit cards are borrowing instruments, unlike debit cards where you already have the money. Banks are there to make money too. Just like high street stores, they hope to maximise their profits within the rules. So it’s important to understand the basics and find a credit card that’s right for you – you can compare low APR credit cards here . Now you know the rules, let’s find out how to play the game. The financial services industry charges interest on the money that it lends out. Let us assume you borrow £100 on your credit card and keep it for exactly one year before you pay it back. For the purposes of this article, we will assume your loan attracts 8% interest per year, which is the Annual Percentage Rate, or APR for that particular transaction. Practical example

Basics of Stock Markets: The A-Z Quick Sheet for a Beginner-Level Investor

Several individuals wish to engage themselves in stock market and invest their money in stocks, but they don’t have an idea about Stock markets and how they work . In fact, there may be lot of info available to you, but they may all seem confusing without actually knowing the basics. This post aims at educating the beginners about the basics of stocks market. Read on to enlighten yourself about the A-Z of stock market. 

Looking For Ways To Finance Your Next Building Project? Look No Further

If you need money to start your next building project, you may be quite surprised by the number of different options you have. However, the options that will actually be available to you will depend on many different factors and these factors will decide how eligible for construction finance you are. In this short article, we will look at what you can borrow, how you can borrow, and what restrictions you might come across. Please note that while the information in this post is correct, your own personal situation will determine what the best course of action is for you. Speaking to an independent financial advisor will help you to see if you are eligible for construction finance and how to go about getting it. Different Types of Mortgages Let’s start with the different types of mortgages that may be available to you. Remember, whether one is better for your needs than another depends on many factors. Commercial Mortgages Let’s start with commercial mortgages because they a

Four factors that have fuelled city-centre living

Urban centres have become increasingly popular in recent years as both residential locations and as commercial space. This social change has been driven by a number of factors and has been reflected in the number of new property developments springing up in major cities around the UK. As space tends to be at a premium in urban areas, it has led to the construction of a greater number of apartments; potentially fuelling interest in block of flats insurance . So why have so many people decided that an apartment in a town is a better place to live than a larger house in the country? Here are four factors that are likely to have spurred on the rush for the city...

Manage Your Student Loan Debt Better in 2015

Image via gettyimages It is usually seen that most of the students fail to manage their student loan debts efficiently after their graduation. The reason is quite simple. Most of the students spend their earnings on comfort and luxuries instead of repaying their student loan debt. It has become comparatively easy to acquire student loans. However, each one of us should keep in mind the fact that repaying loans are not easy as borrowing it. This is why there arises the need of a proper strateg y when it comes to managing your loans. It is desirable to formulate these strategies while you are still in college instead of waiting until you get a good job. If you are one of this kind, here are some easy tips for you to manage your student loan debt better:

Learn how real estate agents value properties for sale

How do you get into real estate sales? Every owner wants to sell his property for its maximum value. And all too often they end up choosing a real estate agent simply based on who gives them the highest initial valuation. However, this will be a costly mistake. How your home is valued. If you make a mistake in the estimate, it is possible that it will be sold for a price that is less than the real value of the property. On the other hand, even overpriced homes will discourage potential buyers from viewing your home. Also, high selling prices can even result in a long wait before a good deal comes in or does not sell at all. Therefore, titration is recommended as a suitable agent. Here are some things that real estate agents consider during property valuation . But, few factors real estate agents consider when valuing a property. 1. Local services:   During property valuation, one of the main factors that can drive the sale price up is the actual area where the home is located. Aspects