 Premiums are soaring due to climate risks, which helps to sideline buyers who may have intended to invest in property mitigation measures. That’s a loss for the entire housing market.
Rising home insurance premiums are making it increasingly difficult to achieve homeownership in America, experts said Thursday at an affordable housing symposium in Washington, D.C., hosted by the National Housing Conference. “Premiums are increasing faster than property values,” said Michael Butchko, vice president of business intelligence at Neighborworks America. He pointed to research from Policygenius(link is external), an online insurance marketplace, showing that home insurance premiums nationwide increased an average of 21% year over year in May—translating to an annual hike of $244. In some areas, premiums spiked 50%, according to Policygenius. These escalating insurance costs are forcing some would-be home buyers out of the market and some homeowners to sell. Major insurance providers are canceling policies and pulling out of areas of the country prone to natural disaster, further leaving homeowners in a bind. Some owners are “going naked,” paying off their mortgage early to avoid the homeowner’s insurance requirement by their lender. The rising cost of insurance is an affordable housing issue,” said Thom Amdur, senior vice president of policy and impact at investment firm Lincoln Avenue Communities, adding that frequent and intensifying climate events, surging construction costs, inflation, and declining competition in the insurance marketplace are putting upward pressure on premiums. The hikes aren’t just hurting homeowners but also developers, which could lead to fewer affordable housing projects, he said. Measuring Future Risk to PropertyTechnology and data can point to the areas at greatest risk of wildfires, hurricanes, wind damage, storm surge, earthquakes, flooding and snowstorms, said Peter Carroll, head of public policy at CoreLogic. Data models also can project 15 to 30 years out, using different climate change scenarios. “Technology can provide powerful measurements of possible underinsured losses for any property,” Carroll said. But, he cautioned, “risk profiles could shift in 15 or 30 years from now, and we could fundamentally see different risk profiles on properties. So, we can’t just look and price out properties based on the risks today. We need to look into the future so that we know where the puck is heading. People who think they don’t need insurance today may need it later on.” Starting next year, Lincoln Avenue Communities will cull data to build out a scorecard for each of its projects, factoring in climate and other risks. “Then we can design mitigation upfront to address any concerns,” Amdur said. He emphasized the importance of “de-risking” real estate portfolios and showing insurers the mitigation steps taken—which may help lower insurance premiums. Consumers also want data to gauge climate risks, with recent surveys indicating an increased concern among the public about how climate events impact housing. Still, that hasn’t changed where home buyers choose to live, said Nicole Bachaud, a senior economist at Zillow. Affordability challenges continue to drive buyers to high-risk areas, where home prices tend to be more moderate. But financial constraints may prevent buyers from retrofitting their property to mitigate climate risks. “Data transparency is huge and giving people access to this type of information to know the risks,” Bachaud said. “But we also need to follow up with what you can do. Consumers need to understand that this will continue to harm housing markets and affordability. We really need to have a mindset shift. That will be a game-changer to see more resilient housing choices in the future.” Preparing the Housing StockPanelists shared a range of ideas to solve the insurance conundrum, including mandatory flood insurance to shore up capital reserves and government backstops to increase the supply of insurance. They also spoke about greater funding and tax credits or other incentives to make communities more resilient to climate change. While their ideas varied, panelists agreed that strengthening the nation’s housing stock against climate events can help drive down insurance costs over the long-term. Stronger building codes are correlated with lower mortgage delinquencies following a disaster, CoreLogic data shows. “We need to start thinking about incentives or building codes that have a more adaptive response to climate risks so we have the right mitigation techniques in place,” Carroll said. “We need to consider the retrofits that can be made to ensure a home is more resilient to future events. We also need innovative financing that makes it easier and affordable for low- to moderate-income families to do resiliency retrofits to their homes.” Amdur said that doesn’t necessarily mean shying away from high-risk areas; preserving the housing stock is still important. “It’s not impossible to build resiliency into areas with higher risk,” he said. His company still takes on projects in coastal areas: “We just need to know the risks upfront and then build it in.” That could mean new design standards, such as removing mechanical systems from the ground floor, installing flood barriers and following updated landscaping guidelines to decrease wildfire risks. Bachaud said climate risk should be weighed more heavily in future developments. “We should be using climate as a lens of where we focus new communities,” she said. “Places that have less risk—climate havens—will become more popular as people are forced to flee places that have been damaged or where they can no longer afford to pay for the insurance on their homes. We need to be strategic in how we approach the future of housing supply and address ways to mitigate climate risks.”
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 Credit is an important financial factor in modern life, necessary for making large purchases and borrowing money.
What many people don’t realize, though, is that your credit score can also affect things unrelated to loans, like your insurance coverage and rates. That’s why it’s essential to know what impacts your credit history and score (and what doesn’t). Read this to learn the truth behind four common credit myths. Myth #1: Carrying a credit card balance will improve your score. While debt utilization (the percentage of your total available credit in use at any given time) matters, carrying a balance won’t necessarily help your score — and could hurt it. Carrying a balance also means having to pay interest on it, which is why paying off your card’s balance in full each month is best, if you can manage it. Myth #2: Checking your credit history will lower your score. When you apply for a loan and the lender checks your credit, that’s a hard inquiry, which can affect your score (especially if multiple credit checks happen within a short period). But you can make a soft inquiry to check your own credit report and score without penalty. Myth #3: Closing a credit account will improve your score. The age of your credit accounts and your credit utilization ratio are both factors in calculating your score. Closing a credit card, especially a longtime account, can actually hurt your score temporarily. It’s generally better to leave a credit card open and unused than to close it. Myth #4: You can quickly improve your credit. Unfortunately, there’s no quick fix for your credit history. Certain events, like bankruptcy or foreclosure, may stay on your credit report for years. Other factors, like high credit utilization, simply take time to improve. But the upside is that you can rebuild your credit over time with sustained effort and good habits. Get in touch if you have questions about your insurance policy or need to make changes to your coverage.  Burn injuries in the United States lead to over 400,000 people needing care each year. Yet, with simple lifestyle changes and safety measures most home burns can be prevented. Below are a few tips to help you and your family avoid burn injuries.
Monitor the condition of electrical cords Electrical fires are a common cause of injuries resulting from burns. Be sure that the quality of your cords is being maintained and always throw away electrical cords that are damaged or broken. Make sure to check for damage frequently and never overload your outlets, power strips, or electrical circuits. For increased safety, experts advise installing safety caps on electrical cords and storing them out of reach. Use space heaters carefully Make sure to have enough fixed space around your heaters. When you leave the room or turn in for the night, always switch off heating devices. Experts recommend keeping all flammable materials, like curtains, blankets or towels at least three feet away from your heaters. Practice burn safety in your kitchen Burn accidents happen frequently in the kitchen. While cooking, never leave your food unattended and keep the stove area clear of all flammable materials. Make sure to keep your cooking area clean - grease and debris can quickly cause a fire emergency. Never use an oven to heat your home and always turn off cooking appliances when you are finished using them. Check your fire alarms frequently The US Fire Administration recommends checking your smoke detector as often as once a month, changing batteries every 6 months and replacing the alarm itself every 10 years. If the batteries are not working, make sure to change them immediately. Test the temperature of your water and hot liquids Not all burns are caused by fire.Extremely hot liquids could seriously harm you and your family members. Make sure to set your water thermostat to a maximum of 120 degrees and always check the temperature of hot liquids you consume or touch. Never leave candles unattended Candles can quickly become a fire and burn hazard. Always put them out before leaving your home or if they are in reach of your kids or pets, and make sure there are no flammable materials around. What to do if you get a burn Although by following fire and burn safety guidelines most home burns can be avoided, accidents do happen. Here are a few tips on what to do if you or your family member gets a burn: Run the burn under cool or lukewarm water To prevent the burn from spreading and gaining severity, run the affected spot under cool or lukewarm water for at least 20 minutes. Remove any wet clothing or jewelry from the site of the burn to avoid irritation. Avoid using home remedies Using home remedies, such as putting ice or using non-prescribed ointments on your wound can actually make the duration and intensity of the burn worse. Avoid self-treatment and stick to the guidance offered by medical professionals. Call 911 or your medical provider No matter the severity of the burn, it's always best if it can get checked out by a medical professional. Experts recommend calling your medical provider (or 911 in the case of potentially severe injuries) immediately after the accident so you can get the right treatment and avoid the burn from getting worse. Call us (508) 540-2601 for more advise and best insurance covers to protect you and your family.  What Does Home Insurance Cover?Typical home insurance coverage (level HO-3) protects the buildings on your property against certain types of damage and affords you personal liability coverage.
Enhanced Coverage for Massachusetts Homeowners Insurance
 As your home begins defrosting from winter’s chill, it’s a good time to get everything ready for spring.
Take advantage of the burst of energy you get from spotting that first flower or songbird to deep clean and maintain your property, from the bedrooms to the backyard. Does your home need some upkeep? Continue reading for five tasks that should be on every homeowner’s seasonal to-do list. HVAC Readiness Whether you have central air or use window units, you should:
Consider scheduling a professional tuneup visit if you’re unsure what shape your system is in. Tree Trimming Prune and trim shrubbery and trees as needed. This will boost the appearance of your landscaping and protect your home by keeping overgrowth away from doors, windows and HVAC units. Look for trees that have been damaged or died over the winter. You may need to have them taken down to prevent risks to your property (or a neighbor’s). Cleaning and Decluttering Now is the time to donate or sell unwanted items, dust and mop your whole home, wash your porch or deck and finish other seasonal or annual cleaning tasks. Roof and Gutters Check for buildup in your gutters, make sure downspouts are pointing away from your home, and look for holes or cracks. If you don’t feel comfortable cleaning your gutters, you can hire a professional. You should also survey your roof to see if there are any damaged or missing shingles, and contact a roofing expert if there are repairs to be made. Drain Your Water Heater Sediment can build up in your water heater, which reduces efficiency. Draining and flushing it once a year can help the unit last longer, and it may also reduce your utility costs. If you’ve got questions about home upkeep or your homeowners insurance policy, get in touch today.  A pair of climate scientists are proposing a sixth category for hurricanes as climate change increasingly intensifies these storms, according to a new research study. In a study, published Monday in the Proceedings of the National Academy of Sciences, the two scientists argued the “open-ended” Saffir Simpson hurricane wind scale is becoming increasingly “inadequate” as the globe continues to warm. The scale, developed in the early 1970s, may not reflect the true intensity of some storms, argued study co-authors Michael F. Wehner — a climate scientist at the Lawrence Berkeley National Lab — and James P. Kossin — a former NOAA climate and hurricane researcher. A Category 6 designation would apply to storms with winds that exceed 192 miles per hour under their proposal. Storms with winds of 157 mph or higher are currently ranked Category 5, an open-ended approach that fails to adequately warn people of the dangers of higher wind speeds, the study contended. The study’s co-authors believe the open-ended nature of the current scale will prompt people to underestimate the risk of some hurricanes, which will become “increasingly problematic in a warming world.” “We find that a number of recent storms have already achieved this hypothetical category 6 intensity and based on multiple independent lines of evidence examining the highest simulated and potential peak wind speeds, more such storms are projected as the climate continues to warm,” the study stated. Does the hurricane intensity scale need a new 'category 6'?Since 2013, five — all in the Pacific — reached wind speeds of 192 mph or higher, with warming conditions expected to bring even stronger weather, The Associated Press reported. “Climate change is making the worst storms worse,” Wehner told the news wire. Some experts told The AP they do not believe another category is needed, and could give people the wrong impression as it’s based on wind speed, rather than water — the deadliest element of hurricanes. University of Miami hurricane researcher Brian McNoldy reportedly noted climate change is not causing more storms, but rather intensifying storms and increasing the proportion that qualify as major hurricanes. This is driven by warmer oceans, McNoldy said. Kossin told The AP pacific storms are stronger as there is less land to weaken them, in contrast to the Gulf of Mexico and Caribbean. While no Atlantic storm has reached the 192 mph threshold, Kossin and Wehner told the news wire the world warming will create a greater chance in the future. Jamie Rhome, deputy director of the National Hurricane Center, noted to the news wire that his office attempts “to steer the focus toward the individual hazards, which include storm surge, wind, rainfall, tornadoes and rip currents, instead of the particular category of the storm, which only provides information about the hazard from wind.” Rhome added a Category 5 already suggests “catastrophic damage” from wind so adding a higher category would not be necessary even in the case storms get stronger, the AP noted.  No one wants to be in the position of filing a car or home insurance claim, but it may be necessary from time to time. Whether your home sustained damage or you were in an accident involving another vehicle, filing a claim starts the process of getting reimbursed. This may include repair costs, the value of lost or stolen property, or associated expenses (such as a rental car or hotel stay). Keep reading to learn when you should or shouldn’t file a claim and how the process works. When should you file a claim? Generally, it can be a good idea to file a claim on your homeowners or car insurance if:
When is it not necessarily worth it to make a claim? There are times when you may not benefit from filing an insurance claim; for example, if the damage to your car or home isn’t covered by your policy. Additionally, if the damage is so minimal that it doesn’t meet your deductible or isn’t worth potentially higher premiums, you may not want to make a claim. Filing several claims in a short time frame could result in higher rates. How to File a Claim If you do decide to file a claim, it’s important to do so as soon as possible. You should provide photos and relevant details and respond to requests for additional information. Call the police if you’ve been in a car accident or if your home has been burglarized. Obtain a copy of the police report to submit with your claim. Stop using the damaged vehicle (or part of your home) until it can be inspected. You don’t want to cause further damage while your claim is active. Reach out if you have questions about your insurance coverage.  What’s one of a homeowner’s greatest enemies? Water (where it shouldn’t be).
When water enters your home, it can quickly cause a lot of damage. So, it’s important to understand which types of plumbing issues and water damage are covered by your home insurance policy. Learn about the types of MPIUA insurance for water damage as well as what is and isn’t covered: Likely Covered When it comes to coverage of water damage, the key indicators that an issue is likely covered are sudden and accidental. Coverage of water damage would fall under dwelling coverage (the structure of your home) or personal property coverage (your belongings). A deductible and coverage limits may apply to personal property coverage — review your policy or contact us with questions. Examples of water damage that are likely covered include:
Not Covered On the other hand, water damage caused by issues that are not sudden or accidental, such as delayed maintenance and neglect, will not be covered. And homeowners insurance only covers the damage caused, not the source of it. You’ll have to replace or repair pipes and appliances yourself. Examples of water damage that isn’t covered include:
 “Act of God” is a commonly used insurance term, but you may not know exactly what it means. When it comes to weather and other unpreventable events, it’s important to understand acts of God so you can protect your property by making sure you have the right insurance coverage.
Keep reading to learn what an act of God is, the types of events that qualify and how it all factors into home and auto insurance policies. What does “act of God” mean? Simply put, an act of God (in property and car insurance policy terms) refers to events, such as extreme weather, that are out of your control. If it’s something you can’t prevent, it’s likely an act of God. What types of events qualify as an act of God? Examples of acts of God include windstorms, lightning strikes, hail storms, wildfires, hurricanes, tornadoes, floods and earthquakes. However, not every act of God is included in a standard insurance policy. You may need additional coverage. Does auto insurance cover acts of God? Car insurance will cover acts of God if you sign up for comprehensive coverage. This type of auto insurance covers natural disasters as well as other types of damage not caused by a collision. For example, if your car is vandalized or an animal runs out in front of you, comprehensive coverage can help you pay for repairs or a total loss. What about home insurance? A standard homeowners policy usually covers some acts of God. Flooding and earthquakes are two common exceptions. If you live in a flood zone or an area prone to earthquakes, you’ll need separate coverage for those natural disasters. Is an act of God the same as a force majeure? The two terms are similar; however, the term force majeure is more commonly used in business and construction contracts. It refers to unforeseeable circumstances that prevent a contract from being fulfilled. Have questions about your insurance coverage for acts of God? Just reach out, and we’ll be happy to help.  Are you a home insurance expert or does the industry’s jargon leave you scratching your head?
Unfortunately, if you don’t understand everything that’s in your homeowners insurance policy, you could be vulnerable to expensive mistakes or unpleasant surprises later on. We’re here to help. Keep reading for our list of 10 important, uncommon and often misunderstood home insurance terms to know about. 1. Adjuster: The claims adjuster investigates your claim, collects evidence and determines how much to pay for the property damage or total loss. 2. Declarations Page: This is the front page of your homeowner’s insurance policy. A declarations page summarizes basic information about your policy such as the policyholder, the home covered, and your coverage and premium amounts. 3. Indemnification: The compensation for your homeowners insurance claim. 4. Loss of Use: Coverage that pays additional expenses when a policyholder has to move out of their residence while repairs are made as a result of damage caused by a covered loss. 5. Negligence: A failure to take reasonable care or otherwise prevent damage to your home and property. For example, you neglect to shovel the snow from your sidewalk and a neighbor injures themselves. Or, you don’t take a dead tree down and it falls on your property or your neighbor’s. 6. Occurrence: A single event or series of exposures that cause an injury or damage to your property. Examples include break-ins, fires, burst pipes and more. 7. Personal Umbrella Policy: An optional, additional liability coverage for your personal assets in the event of an accident on your property that exceeds the limits of your current homeowners coverage. 8. Replacement Cost: The actual cost of replacing your home and property in the event of damage or complete destruction. Replacement cost is different from the current market value of your home. 9. Scheduled Personal Property: If you have high-value personal property such as jewelry, artwork, antiques and more, this type of coverage can be added to your homeowners policy. 10. Subrogation: When someone else’s negligence leads to damage to your property (such as a neighbor’s tree falling on your roof), you can ask your insurer to settle the claim for you. Subrogation is the process of seeking payment recovery for you. Have questions about your homeowners insurance? Just reach out, and we’ll be happy to help. |
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