Homeowners coverage in California for insurance has always had an addendum for earthquakes. These natural disasters have always played a role in the rates that Californians pay for homeowners’ insurance. Yet, in the second quarter of this year, it was revealed that the homeowners’ insurance rates increased 5.4%. This comes as a shock to many people, as the spike increased in only a year’s time.
The reason for this is simple: there’s more information available. People are more apt to understand the danger they’re in. Scientists are no longer locked behind the doors of their labs anymore. They’re out in the world and online, sharing their information with the world.
The Truth is Costly
The truth, especially when it comes to understanding the impact earthquakes have on homeowners’ coverage in California is startling. People and insurance companies are learning the true depth of the danger at the same time. The spike in homeowners’ insurance is a reaction to this information.
The insurance company does deserve a reaction, as the system does not work if they don’t have the funds when disaster strikes. Although, the truth is scary to everyone and raising the rates is only making the truth more painful.
Uptick in Natural Disasters
There has also been an increase in natural disasters. Floods, earthquakes, and hurricanes have plagued the world for a few years now. When there is more of a risk, especially from natural disasters, there is also an increase in homeowners’ insurance.
Sadly, not much can be done about this, except to get the protection for people to need. If that comes at a price, then, for the time being, it must be paid. It’s better to be protected than to lose everything. Yet, the rise in protection price is hurting people financially every day. Therefore, Californians are in a conundrum about their homeowners’ insurance.
To close, homeowners’ coverage in California is important. To protect the families within the state, especially from earthquakes, having insurance rates that include such disasters is imperative. Yet, California locals hope there is a middle ground to be found. People understand that there is a reason for the higher cost. Yet, they also need to be able to afford the protection or it’s useless.