Climate Risk – An Eye on Coverage

By: Advocate Brokerage

 The U.N. scientists were very clear last week: The climate is changing, maybe a little more slowly than first thought, but we can count a future of weirder weather, rising oceans, melting glaciers and other effects that will make a big difference in our lives.

 It’s been pretty obvious in the tri-state area recently that we’re feeling the effects.  According to New York Gov. Andrew Cuomo, New York State is having a “hundred-year storm” every two years these days. We’ve lived through “Superstorm Sandy,” a Halloween blizzard, “Hurricane Irene”, winds that have brought down trees and damaged houses, and floods that have strangled our transit systems and inundated businesses.

 Maybe we’d like to say “enough is enough,” but the scientists predict that sea levels will continue to rise throughout this century and the oceans and atmosphere will continue to warm.

 At Advocate Brokerage, we tell our clients that ocean temperatures are up one degree over the past two decades, and that the consequences are becoming obvious. In places such as New York and Florida, frequent storms have led to higher homeowners insurance premiums to cover potential losses.

 Climate change is a hot button topic for the insurance industry, and many companies have been quite vocal about recognizing the need to put a price tag on climate change by connecting many natural disasters with it – such as the increase in windstorm-caused damage and destruction over the past decade. 

 According to the President of the Reinsurance Association of America, the insurance industry will be “at great financial peril” if it doesn’t realize the need to understand the science of climate change and the potentially serious ramifications of a changing atmosphere.

 New York and Connecticut are among the five states requiring insurance companies to disclose how prepared they are for climate change. We advise clients to look for potential dangers such as trees that could fall on their house or a brook that could overflow, and make sure they are properly covered.

 Climate change is sometimes a controversial topic, but a relevant one that could put people and properties at risk. It appears to be doing so already. When it affects your insurance, a safe bet is that Advocate Brokerage will be ready to assess and respond to your needs, and protect your autos, home and possessions with exactly the right coverage.

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