Making Intelligent Choices – How to Navigate the Climate Impact on Home and Auto Insurance

by Mar 26, 2024

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Emerging Options on Home and Auto Insurance

It is very clear that climate disasters are real and create significant issues with personal insurance choices. Both home and auto insurance premiums are on the rise, and the options for carriers continue to shrink.

Adapting to the Changing Insurance Landscape

“Just this week State Farm withdrew from underwriting policies in California”

Intelligent Choices - Shepard Insurance Group

Just this week State Farm withdrew from underwriting policies in California, with non-renewal notices for 72,000 insured’s coming over the next 12 months. The issue in California is primarily climate, with wildfires and mudslides, but additionally California regulators enforcing underpriced insurance premiums as well.

The decision by State Farm to withdraw from the California market is a stark indicator of how climate change is influencing insurance policies nationwide. This event serves as a wake-up call for policyholders to reassess their insurance needs and options in light of increasing environmental risks. It’s crucial now more than ever to stay informed and proactive in securing coverage that adequately protects against the growing threat of climate disasters.

Strategies for Mitigating Insurance Vulnerabilities

The last place you want to be is holding a non-renewal of your home or auto insurance coverage, especially difficult if you have had any claims or driver violations.

At Shepard, we envision a future where making intelligent insurance choices in the face of climate disasters is paramount. Here are several steps to consider:

Adopt Larger Policy Deductibles: remove the thought of submitting small claims, controlling your long-term insurance premiums.

Customize Coverage Limits: If possible, tailor each coverage limit to match your actual needs, ensuring you’re neither overinsured nor underinsured

Opt for Comprehensive Policy Forms: Avoid basic policy forms for home and then auto coverage that always include internal policy limits on recovery in the event of a claim. Get full guaranteed replacement cost coverage for the dwelling and contents

Steer clear of Third-party Claim Services: Choosing insurers with in-house claim processing can significantly reduce recovery times and frustrations

Making Intelligent Choices Amid Climate Disasters

The landscape of personal insurance demands a strategic approach to overcome the challenges presented by climate disasters. By refinding your insurance strategy, you can ensure greater resilience and protection.

Need Personalized Guidance?

If navigating the complexities of home and auto insurance adjustments seems overwhelming, Shepard Insurance is here to help. From personalized advice on making the most informed insurance choices in light of climate impace, drop Kyle an email at or call 203.698.9342.

Written by: Kyle Shepard

Kyle’s extensive sales and account management expertise transcends both Commercial and Personal Lines. Coupling that with his finance and life insurance licenses, Kyle serves as full service insurance agent for all of his valued clients. The goal for Kyle is to provide tailored risk management to address his client’s current and future exposures, and to optimize wealth preservation.

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