Learn more about how climate change affects New York property insurance, and what New York homeowners can do about it.
Key Takeaways:
- Climate-based threats are rising, making climate risk home insurance increasingly necessary.
- Insurers are now adjusting home insurance premiums based on homeowners’ proactive measures to protect their property.
- Taking action to safeguard your home’s interior and exterior against climate change can protect people and property while potentially lowering your premiums.
New York City closed 2024 with insurers retreating due to extreme weather risks, like droughts and bushfires. But this trend isn’t just specific to the Big Apple.
Statewide, insurers are either raising their rates or refusing coverage as the increasingly destructive effects of climate change bring storms, heatwaves, and torrential rains.
A rapidly changing world brings ongoing alterations to exactly how much New York property insurance is enough to stay safe. It also places greater responsibility on homeowners to prepare for how climate change might affect their property.
That’s why, in this article, we’ll dive into how insurers are reassessing risk in light of these extreme environmental shifts, and how homeowners can adapt to strengthen their vulnerability and improve their insurability.
Climate-Related Factors Impacting New York Home Insurance Policies
ClimateCheck analyzed New York’s median risk in the five main climate-related categories influencing the state’s homes through 2050 and beyond.
The results were:
- Precipitation (which includes rain, sleet, snow, and hail): Extreme
- Heat: Very high
- Flood: Significant
- Drought: Relatively low to significant
- Fire: Relatively low
Each of these risks poses a serious threat to New York’s homes. But they also mean that policyholders can realistically expect their home coverage premiums to rise in the future.
Upwards is the typical trajectory for insurance rates, but that doesn’t mean homeowners have to pay more than necessary. Saving money starts with understanding what insurers consider when setting their prices.
Let’s take a closer look at what that means.
How New York Insurers Determine Premiums
New York insurers determine standard home insurance premiums based on many factors. Most important for this article are the home’s risk profile based on its location, and how proactively the homeowner is protecting their property.
Climate change has made insurers increasingly concerned about certain location-based threats in recent years. For example, flood insurance was once a fairly optional consideration that added an extra layer of protection.
But today, it’s become one of the most important forms of coverage in New York as the number of homes in actual and potential flood zones has increased. Floods are climate-driven disasters not typically covered by standard home insurance, a fact that could leave many New Yorkers surprised, upset, and forced to bear heavy expenses alone.
That’s why it’s become more important than ever to understand what’s actually covered under your home policy, so you can combine it with climate risk home insurance.
It’s also vital to do all that you realistically can to protect your property inside and out. Why? Because it’s very likely that New York insurers will be using such measures to calculate (and even raise) your premiums down the line.
Tips to Reduce Risk and Improve Insurability
Climate risk home insurance is great to have, but it doesn’t solve everything. It can be costly to physically safeguard your home against the elements, but the long-term return on that investment is simply priceless.
You’ll stay safer, strengthen the structure, and potentially lower your home insurance premiums.
Consider using the following to help safeguard your home against specific risks:
#1: Increased Heat
Your home’s roof is particularly vulnerable to increasingly harsh sunlight, so consider adding cool roof materials and applying UV coating.
UV-resistant paints can also help protect exterior walls from intense sunshine, as can planting large plants or tree features.
Believe it or not, sunlight can cause interior house fires when windows and doors magnify and focus it. This could be explosive if unfiltered sunlight hits flammable materials. Filter strong sunlight by installing glass with UV protection, tints, or low-emission profiles.
#2: Floods
Getting flood insurance in New York is an excellent way to complement your standard home insurance, especially for those living along our coastline.
You can further improve insurability and reduce your flood risk by sealing crawl spaces and basements, and elevating any indoor electronics above floor level.
Ensuring your home’s grading and drainage are adequate against floods is a great exterior protector, as are traditional solutions like rain barrels.
#3: Precipitation
Once again, a well-protected roof in good condition can do a great deal to prevent costly damage to your home caused by snow, sleet, hail, and heavy rain.
Seal all doors and windows with waterproof materials and keep your gutters and downspouts free of debris and blockages.
#4: Fire
For your interior, installing smoke detectors and sprinklers can further improve your insurability, as could adding fire extinguishers and installing fire-resistant insulation.
Outside the home, keep flammable items at a safe distance and incorporate non-combustible materials wherever possible.
Staying current with climate change’s effects helps boost your awareness and encourages proactive steps.
For more helpful tips and tricks for staying prepared against New York climate change, you can visit FEMA’s Flood Map Service Center and Climate Change Resources. ClimateCheck also offers a free risk assessment for your property.
Lastly, some whole-life policies can be extended to provide further protection against natural disasters. This may allow access to funds that could help you meet expenses caused by climate-related natural disasters.
Combining this potential benefit with New York property insurance and climate risk home insurance will keep you well protected against climate change.
Don’t let the statistics make you feel helpless. You can always speak to a New York-based insurer who understands the relevant policies and how climate change is impacting communities.
How NICRIS Can Help
At NICRIS, we have years of experience with New York property insurance, using our knowledge to work closely with our customers, helping them assess their current environmental vulnerabilities and find the climate risk home insurance that’s specifically right for them.
Our risk assessments are free, just like our policy reviews, which can help you decide if your current home coverage is enough. It’s a good idea to review your policy regularly, especially in relation to the rapidly evolving world of climate change.
Contacting NICRIS is quick and easy. You can book a free hour-long insurance review, get in touch via our contact form, or get an instant quote! We’d love to hear from you.