07 Sep A Year of Natural Disasters: How Does It Affect Insurance?
In North Carolina alone, two devastating disasters occurred in 2011, starting with the April 16th tornadoes that caused overwhelming destruction across the state and most recently the flooding and damage from Hurricane Irene. But what do all of these costly disasters mean for the insurance industry?
As costs increase and insurance claims pile up, insurers are doing the only thing they can to stay afloat…raise the cost of insurance. While some areas don’t have to worry about hurricanes or tsunamis (like the giant one that affect Japan) physically affecting them, they still feel the effect of these disasters on their insurance rates. As the Insurance Information Institute notes, three of the 15 most expensive natural disasters in recorded history have occurred in the last 18 months, and pushing up the cost of insurance is the only option for insurers. By raising all types of rates, it allows insurance companies to somewhat cover losses from recent disasters across the world. Do you want to know if your insurance rate might be affected? Visit our website for free North Carolina insurance quotes or call Spivey Insurance Group today at 877-318-5951 to ensure that you have the proper insurance policies for you!