Utahns: Find out which natural disasters your county faces

Homeowners insurance is growing more expensive or hard to find because of natural disasters. The Salt Lake Tribune breaks down which counties have the highest risk for some of the havoc. 

"As wildfires, floods and other natural disasters wreak havoc across the country, insurers are raising premiums or pulling out of some markets altogether because of the risk" writes Megan Banta for The Salt Lake Tribune.   | Dec. 28, 2023

 Wonder why your Homeowners insurance had increased substantially for the past couple of years? 

"Premiums increased an average of 21% from May 2022 to May 2023 across the country and more in Florida and some western states including Utah, according to a report from Policygenius." HO insurance is not only becoming more expensive but also, harder to get. Friends of mine have had their insurance cancelled after a very minor claim. 

According to Banta's research: "Summit County and five other counties in Utah have a “relatively high” risk of wildfire, according to the National Risk Index, part of the Federal Emergency Management Agency. The other 5 counties are: Washington, Iron, Tooele, Salt Lake, and Utah. 

Banta's investigation also identified Utah counties at highest risk for avalanche, earthquake, and landslide. 

Of course, certain areas within a county likely have little or no risk of landslides and avalanches. So consider location when purchasing or renting property. One can still see the massive boulders that crushed a house and killed two people in Rockville. Just this year a house in LaVerkin started to crack and slide into the canyon where it was perched. Within the past decade Santa Clara lost some homes to the same risk of being built on the edge of a cliff for the view. Other counties provide numerous examples of housing being built where it never should have been located.  

The wildfire problem grows each year with our changing, hotter climate and as people build homes at the urban-wildland interface.

Unfortunately, HO insurance doesn't cover loss due to earthquake, flood and earth movement. 

Check out the other posts in this blog on related topics. 

Read the full article at: 

https://www.sltrib.com/news/2023/12/28/heres-where-utahns-face-highest/?utm_source=Iterable&utm_medium=email&utm_campaign=campaign_864285712.28.23%20Top%20Stories 

If you are not a Salt Lake Tribune subscriber and live in Utah... maybe it is time. 

Planning to move to a disaster-prone dream locale?

 A small but growing number of people are taking climate change into account when choosing where to live. Armed with climate studies, movers can identify locations that are less likely to experience extreme weather events, such as wildfires, drought and flooding. 

Because they are older, retirees are particularly at risk during climate-induced disasters.

"Extreme weather can be particularly dangerous, and even deadly, for the elderly, who are more likely to have chronic medical conditions and disabilities, according to numerous studies."

"Three-quarters of residents who died in the 2018 Camp fire, which destroyed the Northern California community of Paradise, were 65 and older. Well over half of the record-high 323 people who died from heat-related causes in Arizona’s Maricopa County in 2020 were at least 50. And two-thirds of the people who died in Florida during Hurricane Ian in September were 60 and older."

Resources are available to assess the climate risk of your current home or places you are considering moving to for work or retirement.

The National Oceanic and Atmospheric Administration’s Climate.gov provides data on floods, wildfires, drought, wind, disease and other climate hazards.

Current and prospective buyers can check out specific properties. "Risk Factor provides data on anticipated wildfire, flooding and extreme heat risks for 145 million properties in the United States over the next 30 years."

"Each property is ranked for each type of risk on a scale from 1 (minimal) to 10 (extreme). The online tool provides a percentage likelihood of the risk occurring over time — for example, that floodwaters could reach your house in the next five or 10 years or that the community could experience a certain number of 100-degree days. (ClimateCheck also provides property-specific risk data on heat, drought, fire, flood and storm.)"

Some real estate agencies provide climate risk projections.  First Street Foundation, the nonprofit that developed Risk Factor,is useful to current homeowners as well as prospective buyers. Once you know your current risk you can take action to minimize the risk from climate-related disasters. 

Buyers who choose to move to a risky area should first explore the costs of hurricane windows, flame-resistant roofs, energy-efficient air-conditioning, home elevation and repairs from wind damage or flooding.

Before buying, "ask several insurance companies about the cost and availability of homeowners’ coverage. Premiums are rising considerably in communities prone to wildfires, hurricanes or flooding, and many insurers are not renewing policies, limiting coverage or pulling out of high-risk markets."

Source:‘Do You Really Want to Rebuild at 80?’ Rethinking Where to Retire.

By Susan B. Garland, New York Times

Published Nov. 18, 2022Updated Nov. 22, 2022

 

Wildfire aftermath:

 

 

Why are Property Insurance Rates Increasing Faster than Inflation?

 Climate-related disasters cost all of us, even when we are not directly affected.

"The National Oceanic and Atmospheric Administration tracks weather-related disasters in the U.S. that cause more than a billion dollars’ worth of damage. According to NOAA:

In the 1980s, the U.S. saw an average of 3 such disasters per year. 

In the 1990s, the average was 5 per year;

In the 20002, it was 6; 

In the 2010s it jumped to 12. (The $ amounts are been adjusted for inflation.) 

In 2020, a record-shattering 22 disasters costing more than a billion dollars struck the country. 

In 2022 we are on pace to match that record, with 15 such disasters by October, including Hurricane Ian, which is likely to prove one of the most expensive storms in American history. 

Adam B. Smith, a NOAA researcher, has written that a disastrous number of disasters “is becoming the new normal.” The rise is partly a function of more people living in vulnerable areas, such as floodplains. But increasingly it’s a function of climate change."

"In the future, the costs may climb steeply or they may climb precipitously. All our infrastructure has been built with the climate of the past in mind. Much of it will have to be rebuilt and then, as the world continues to warm, rebuilt again."

Comment: Now is NOT a good time to buy South Florida real estate... or coastal property anywhere. Climate change/disruption is here now; not sometime in the future. And it is costing all of us in the form of higher property insurance rates (even if we live far from these disasters because insurance companies spread the costs) and because our state and federal taxes help alleviate the damage once it occurs. The tax dollars spent on disasters could provide other services to Americans.

Data source: The New Yorker, Climate Change form A to Z, by Elizabeth Kolbert November 21, 2022.

 

Cost of auto insurance in 2021

 How much are you paying for auto insurance each year? "Americans spend an average of $1,674 a year, or 2.44% of their income, on full coverage car insurance" but "Americans can pay significantly different rates depending on their location." Bankrate.com has great info and advice for drivers

This web site offers a map of the U.S. where you click on your state to find out the average cost of vehicle insurance. Where you live within your city can impact your car insurance premiums! Click on the map to view costs in your area: https://www.bankrate.com/insurance/car/the-true-cost-of-auto-insurance-in-2021/#how-to-reinvest-auto-insurance-savings

Learn how to save on auto insurance

Improve your credit score

Choose the right vehicle

Focus on your driving

Prepare in advance for your teen driver

Learn where to"invest" your auto premium savings.

 

 

Vehicle insurance prices dropped in 2020 due to fewer miles traveled

Rates fell on average 4% in 2020 but expect rates to increase in 2021.  

The average annual car insurance bill is $1,483, down 3.9%.

Gee, with so many people working from home, why didn't rates fall more than 4%? Car insurance companies are posting record quarterly profit gains. The Center for economic Justice and the Consumer Federation of America are asking insurers to reduce rates to reflect their growing profits. 

Insurers say the accidents that have occurred have higher property damage and higher medical cost because the fewer accidents have been far worse to the excessive speeding taking place during the pandemic. Also there is a lot more accidents attributed to distracted driving due to drivers texting and talking on smartphones.

Miles driven are returning to pre-pandemic levels even if a lot of employees are still WFH. More people are driving rather than flying to visit relatives and take vacations.

Homeowner's Insurance Rates Going Up due to Climate Change-related disasters

 Surprised by increases in your HO insurance?

Even for property owners who have never filed a homeowner’s insurance claim, the premium will be likely go up for 2021 due to an increase in the frequency and severity of natural catastrophes and their resulting insurance claims across the US for the years 2017-2020. In short, losses have increased faster than the capital base of the insurance industry and the industry is taking steps to make sure that it is solvent and able to pay all of the claims which have and which will arise.

2020 was a record-breaking year for hurricanes and wildfires, both aggravated by climate change. Expect more of the same next year and in the coming decades as world leaders, and the U.S. in particular, have failed to reduce carbon emissions.

Homeowner's Insurance Resource

Time to review your current HO policy, especially if you've made renovations to your home or condo. If you have children going to college away from home, their possessions are usually covered by standard HO policies.


Reminders:

• Make sure your home valuation report is up to date
• Consider full-replacement cost coverage if you live in a high-risk area
• Find out exactly what your policy covers before purchasing it
• Consider add-on coverages for flood & earthquake-prone areas

There are some new "kids on the block." Have you ever heard of Lemondade, Hippo Home, Young Alfred? Learn about these options at:
https://www.consumersadvocate.org/home-insurance

Thinking of Buying Vehicle Insurance Online? Think Again

Writing for The Wall Street Journal (11/24-25/18), Nicole Friedman explains the pitfalls of online shopping for car insurance. The experience can be frustrating for many reasons, including, the proprietary formulas that insurance companies use. You need to visit multiple sites for the different companies (and set up your own spreadsheet for comparison). Some of the biggest insurers (including Stte Farm & Geico) don't share their rating system with price comparison sites. Now most sites are simply "lead generation" sites that identify potential customers for agents to contact.
Another reason: Your info may be sold. Most auto insurance comparison sites sell shoppers' info to agents and insurance companies.
So... what do you get in return for sharing your personal info? Two to three quotes, emails, and phone calls from agents.
"It's nothing more than a garbage arbitrage play, where someone buys your info once and sells it 10 times" according to Keith Melnick, CEO or insurance comparison sites Zebra (which no longer sells leads).
Insurance is regulated by the states with each state having different rules.
The actual cost will differ from the estimated price, sometimes significantly. 
Most shoppers need an expert's help to decide how much insurance to buy for their circumstances. 
"The quoted price matches up with the final price about 60% of the time."

Related: Take Control of your Auto Loan webinar from the Consumer Financial Protection Bureau: https://www.youtube.com/watch?v=RIYKGRp1veM

Homeowners Insurance DOES NOT cover floods! (or earthquakes)

Moody's Analytics is forecasting losses of $22 Billion for the impact of hurricane Florence in North Carolina. 
So you think you don't live in a flood area. That's what too many North Carolina residents thought, especially if their mortgage holder didn't require them to have flood insurance. Other homeowners thought that FEMA would reimburse them for their losses from flooding.
Similar to what happened last year with hurricane Harvey in Texas, far too many North Carolina residents are facing financial disaster because they failed to buy supplemental insurance to cover flooding.
Fewer than 10% of residents along the N.C. coast have flood insurance. FEMA grants amount to only a few thousand dollars per household hardly enough to clean up and never more than $33,000 which won't rebuild a house. It's just enough to replace a vehicle. With continued extreme disasters resulting from climate disruption, many of these property owners should NOT rebuild in their current location.
So check your homeowners insurance now.

So you think you don't need flood insurance?

Unaware and in Need of Flood Insurance

Just because you don't live next to the ocean or on a river bank doesn't mean your house is safe from flooding as too many Houstonians discovered. For the vast majority of Americans their house is their biggest financial asset and often the bedrock of their retirement plan.

It's time to face the facts of global climate change and take personal action as well as insisting that your legislators take their heads out of the sand and start taking collective action to address global warming. The storms are getting worse and more frequent; we all suffer from climate change denial.
"Millions of U.S. homeowners may not realize they’re at risk of flooding, due to outdated flood plain maps and even less information about dam and levee “failure zones” and urban storm-water hazards like the river running through downtown Miami during Hurricane Irma." Read this valuable article from the Squared Away Blog and ACT on the information! http://squaredawayblog.bc.edu/squared-away/unaware-and-in-need-of-flood-insurance/
P.S. I just called my insurance agent to update and increase our property insurance.

Wondering Why your New Car Insurance is So Expensive?

"New cars loaded with high-tech crash-prevention gear are having a perverse effect on car-insurance costs: They are soaring."
"Safety features such as autonomous braking and systems to prevent drivers from drifting out of their lanes are increasingly available on vehicles rolling off assembly lines. Auto companies and third-party researchers say these features help prevent crashes and are building blocks to self-driving cars. But progress comes with a price."
"Enabling the safety tech are cameras, sensors, microprocessors and other hardware whose repair costs can be more than five times that of conventional parts. And the equipment is often located in bumpers, fenders and external mirrors—the very spots that tend to get hit in a crash."

Christina Rogers & Leslie Scism explain the details behind the sky rocketing insurance costs in the Wall Street Journal: Why Your Extra-Safe Car Costs More to Insure

What to do BEFORE you get hit by an uninsured motorist

My assistant blogger had the unfortunate experience of being hit by an uninsured motorist. Learn from her experience.

It's not unusual to get in a fender bender in the winter, and most motorists know what to do if this happens. Exchange insurance information, document it, etc. But, what happens if you're hit by an uninsured motorist?

First be proactive. BEFORE you get hit by an uninsured motorist check and make sure your insurance covers this. Likely it does, even if you only have liability insurance. Check the coverage limits and make sure to add this protection if you don't already have it.

Our insurance, for example, had a $250 deductible with a $3500 maximum for uninsured motorist property damage. So, if we were driving a car worth more than $3500, it might be worth it to increase the maximum property damage amount.

*Note that our insurance had no deductible for bodily damage caused by an uninsured motorist. The maximum insurance would pay for bodily damage was $100k per person up to $300k per accident. To put it another way, bodily and property damage can have two different maximum pay out amounts and different deductibles as well. Check your coverage and make sure you're comfortable with the amounts covered and the deductible.

With an uninsured motorist, it's very important to document, document, document! Make sure to get the other driver's contact information, driver's license, and vehicle information, etc. use your cell phone to take photos of vehicles, license plate, their driver license. If the damages are more than your deductible, consider filing a claim with your insurance company, but only if the damage exceeds your deductible by a substantial amount. That’s up to you to decide, keeping in mind that insurance claims often result in higher premiums for years. Will the compensation from your insurance justify potentially higher rates for years to come?

Also, note that one should call the police even for a minor fender bender. Driving without insurance is illegal and most uninsured drivers risk having their car impounded after an accident. Assuming you're the one hit by an uninsured motorist, the more documentation you have the better for you and your insurance company.

It is possible and legal to settle without using insurance. However, a driver without car insurance is unlikely to have the money to pay for damages so make sure you're covered before you get in an accident!

Where to keep & how to replace vital documents

Birth certificate, marriage certificate, will, passport, Social Security card or divorce decree lost or missing? Here's what to do.

By Sandra Block, From Kiplinger's Personal Finance, March 2016.

http://www.kiplinger.com/article/business/T021-C000-S002-how-to-replace-vital-documents-and-records.html

To learn more, come to Financial Planning for Women on Wednesday March 2 (a week early due to USU's spring break). We will focus on securing your financial and vital documents to weather disasters. FPW is a monthly educational seminar that meets the second Wednesday (usually but not in March) of most months at two times: 11:30-12:30 p.m. in the USU Taggart Student Center room 336 (Bring a lunch), and at 7:00-8:30 p.m. at the Family Life Center, 493 North 700 East, Logan (at bottom of Old Main Hill). The longer evening time slot allows for more discussion. Programs are free and registration is not required. Men are always welcome. New attendees will receive copies of personal finance magazines.
Each time you attend FPW between January and March you will be entered into a drawing for a free financial advising session.