One of the impacts of climate change could be that insurance will be too expensive for many people in Florida and throughout the country to afford. Climate change was cited as the reason why insurance companies lost $24 billion after wildfires burned portions of California. In addition to fires, increasing global temperatures could result in hail, rain and other significant weather events. Generally speaking, the more risk an insurance company has to take, the more it will charge for coverage.
If severe weather events become more common, rates may have to rise to ensure that insurance providers have an incentive to stay in the market. In the event that individuals are unable to protect themselves financially, access to insurance could become a social issue. According to a representative from Insurance Europe, access to insurance is critical for society to be able to function properly.
The California wildfires were not the first natural disasters to be linked to climate change. It was noted by Lloyd's insurance market that losses related to storm surge from Superstorm Sandy were exacerbated by global warming. However, researchers do caution that it isn't easy to link a single event to climate change. Instead, the link between major storms and climate change is made by looking at a large amount of data over a long period of time.
If a home experiences hurricane damage or destruction caused from some other natural event, it may be possible to file an insurance claim. Ideally, the claim will be filed as quickly as possible to reduce the chances of secondary issues developing. If a legitimate claim is denied, legal action may be warranted.