Call: 203-637-6655  or email – Kyle Shepard

The Letter A

Home Insurance’s Scarlet Letter

Is your address under the microscope?

It is abundantly clear that climate change, and the devastating storms that seem to be one result of the change, has the full attention of those insurers committed to providing home insurance. We say committed because there are several companies that are withdrawing, first from high disaster areas, and some from issuing property insurance at all.

“We have property owners looking for insurance in areas where coverage is just not available”

Here is what it means to Homeowners?

First, to be clear, if you own a home and have not had any insurance claims your future for home insurance is most likely safe. You can find coverage, but rates are escalating.

If you own a home, or are considering owning a home in one of these higher risk locations, obtaining home insurance will be a challenge. Even automobile insurance may be an issue with the location- let’s not forget there were 350,000 cars destroyed by Hurricane Ian in Florida.

Some of the key risk factors and items to consider with the location of the house:

  • Coastal – meaning anything within 1 mile from the coast
  • Near a flood zone/subject to water surge (even if your home is not in a high-risk flood zone)
  • Rural – surrounded by a forest or shrubbery
  • Distance from a fire department and fire hydrant – if you are too far away the carrier may not offer coverage
  • Geographic regions that have experienced catastrophic weather events in the last 20 years.

We have property owners looking for insurance in areas where coverage is just not available. No one will offer insurance. It’s a major concern!

For buyers, and even current owners, websites like Risk Factor will help you get a sense of the risk for wind, flood, wildfire and even heat. (www.riskfactor.com)

The bottom line here is that your location is now under the microscope for insurance companies in their effort to assess what locations are the current and future climate disasters. It is all very complicated and makes property ownership in the locations with the risk factors listed above a significant challenge.

If you have concerns about a location and the potential for an insurance Scarlet Letter drop an email to Kyle at kshepard@shepardinsgrp.com or call 203.698.9342 to assist in getting the intel.


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