In recent years, it’s become impossible to ignore the impact of climate change on our daily lives—from longer wildfire seasons and stronger hurricanes to historic floods and prolonged droughts. But what many homeowners and property owners are now discovering is that climate risk isn’t just environmental—it’s financial.

Insurance premiums are rising dramatically, coverage is being restricted in high-risk zones, and some companies are even pulling out of entire regions. It’s a confusing and stressful time for policyholders—but you don’t have to face it alone.

This is where SBJW Insurance comes in: helping you navigate a fast-changing insurance landscape and ensuring you still get the coverage and protection you deserve.

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Climate Risk Is Now an Insurance Risk

Natural disasters aren’t just becoming more frequent—they’re also becoming more severe and costly. According to NOAA, the U.S. experienced 28 billion-dollar weather events in 2024 alone, up from just 12 a decade ago.

This surge in extreme weather means higher risk for insurers, and unfortunately, that cost is often passed down to you, the policyholder.

Here’s what we’re seeing:

• Wildfires in the West forcing carriers to cancel or non-renew homeowner policies
• Hurricanes in the Southeast triggering massive rate hikes and limited wind coverage
• Flooding across the Midwest impacting both residential and commercial property premiums
• Hail and tornado events in previously low-risk zones reshaping underwriting assumptions

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Why Premiums Are Rising

Insurers calculate premiums based on expected losses. With losses skyrocketing due to natural disasters, the response has been:

• Steep rate increases in disaster-prone areas
• Reduced coverage (e.g., higher deductibles for wind/hail/flood)
• Exclusions for certain types of damage
• Withdrawals from high-risk states like Florida, California, and Louisiana

And it’s not just homeowners. Auto, renters, and commercial property insurance are also feeling the impact.

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Regional Differences Matter More Than Ever

Not all policyholders are affected equally. Two homes with the same value could have vastly different premiums depending on where they’re located—even just a few miles apart.

Examples:

• A home in a wildfire-prone California ZIP code may see 300% higher premiums—or lose access to private insurance entirely.
• Coastal properties in hurricane zones may require separate windstorm or flood policies to remain protected.
• In the Midwest, some insurers are adjusting hail deductibles from flat amounts to percentage-based models, leaving more out-of-pocket expenses.

Even previously “safe” regions are facing new risks due to shifting climate patterns.

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How SBJW Insurance Can Help You Navigate the New Normal

The good news? You don’t have to figure this out on your own.

At SBJW Insurance, we understand how frustrating and confusing this market can be. That’s why we’re committed to helping you:

✅ Shop smarter – We work with a wide range of carriers, including specialty insurers that still offer protection in high-risk areas.

✅ Understand your options – From flood add-ons to wildfire coverage, we explain exactly what your policy covers—and what it doesn’t.

✅ Save where you can – We’ll help you bundle policies, identify discounts, or explore usage-based or parametric options when appropriate.

✅ Plan for the future – Need to move or rebuild? We’ll help you find coverage that fits your next step.

✅ Get peace of mind – Our personalized approach ensures you’re not just insured, but truly protected.

Whether you’re a homeowner, landlord, or business owner, we’ll help you adapt to the challenges of a changing climate without compromising coverage.

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Final Thoughts

Climate change isn’t just reshaping our environment—it’s rewriting the insurance playbook. With premiums rising and policies becoming more complex, now is the time to be proactive.

Let SBJW Insurance be your advocate in this evolving landscape. We’re here to help you make sense of your options, secure the best protection, and move forward with confidence—no matter the forecast.

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Need help reviewing your current policy or getting a quote?
Contact SBJW Insurance today—we’ll guide you every step of the way.