Several major U.S. property insurers, including Allstate, American Family, Nationwide, Erie Insurance Group, and Berkshire Hathaway, have informed regulators that they are discontinuing coverage in regions vulnerable to extreme weather events linked to climate change. They are excluding protections from various weather events, raising monthly premiums and deductibles, and cutting out damage caused by hurricanes, wind, and hail from policies underwriting properties along coastlines and in wildfire-prone areas. These changes, reported in a survey conducted by the National Association of Insurance Commissioners, leave homeowners in formerly considered safe areas without crucial insurance protections as they face an increased risk of natural disasters due to rising global temperatures. Climate change is causing escalating claims costs, with U.S. insurers disbursing record amounts in natural disaster claims in recent years. Rate increases for homeowners insurance are regulated by state agencies, limiting insurers' ability to accurately price policies based on risk, which has led to policy changes that may be unfavorable to some consumers but are deemed necessary for the survival of the insurance market.
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