Is your home insurance ready for climate change? Here’s what you need to know

Home insurance is getting more expensive, harder to obtain and more confusing than ever. If you’re wondering why your premium just jumped again, there’s a high chance the answer can be summed up in one word: climate.

From floods in places that never used to flood, to fire zones expanding into suburbs, to hailstorms hammering homes with no warning, climate change is shaking the foundations of home insurance. Insurance companies are reacting with double-digit premium hikes, dropping coverage in high-risk areas and in some states leaving the market altogether.

Climate change is affecting your homeowners insurance, so it’s important to know which disasters are covered, which aren’t, how to protect your home and your wallet and where to turn for neutral expert advice.

The rising cost of climate risk

Let’s start with your wallet. Between 2023 and 2025, homeowners in the U.S. have seen insurance premiums jump by anywhere from 6% to 20% nationally. And those are just the averages. In places like Florida and California, it’s much worse.

Wildfire zones in California are seeing mass non-renewals, even for long-term customers. Insurance companies are reassessing risk on a massive scale.

It’s not just about pricing. Some areas are becoming what economists call mortgage deserts, which are places where it's hard to get a mortgage because insurance is too expensive or unavailable. This isn’t a future problem. It’s happening now.

And then there’s hail. Yep, hail. Hailstorms are becoming bigger, more frequent and less predictable, especially across the central U.S. The result? Roof claims are skyrocketing and so are premiums.

Insurance and coverage gaps: floods, wildfires, storms, hail

So what disasters are actually covered? And which ones aren’t?

Let’s break it down.

Floods

Flood risks are evolving quickly. Heavy rain events are now causing flooding in areas once considered low risk, and flood zones continue to shift over time. Many homeowners in these areas still do not have flood insurance.

Wildfires

A big reason for non-renewals and premium hikes across western states are wildfires. Urban sprawl means more homes are built near forested land, increasing the risk. Some communities have adopted wildfire mitigation programs that can help residents keep their insurance.

Severe storms and hail

Storms are now a major cost driver. Larger hailstones mean more roof damage and carriers are responding with higher rates and stricter policies.

Most homeowners assume their policy covers all of this. But depending on where you live and how your policy is written, you may face natural disaster insurance exclusions, high deductibles or a flat-out denial. That’s why it’s so important to review your home insurance policy regularly.

Addressing coverage gaps in a changing risk landscape

As traditional coverage models face new challenges, insurers and homeowners alike are looking for ways to close the protection gap and realizing the difference between total economic losses and what insurance actually covers. This gap is widening as severe weather events become more frequent and costly.

In the U.S., factors like rising premiums, policy non-renewals and limited awareness of coverage needs are leaving more households financially vulnerable after disasters. Similar trends have been seen globally, where a significant share of climate-related losses go uninsured.

Bridging this gap often means reviewing existing policies, adding endorsements for excluded perils and considering specialized coverage options for high-risk areas. Proactive risk reduction measures, such as home hardening and community mitigation programs, can also help keep coverage accessible and affordable.

How homeowners can adapt

The good news? You’re not powerless. There are real steps you can take to lower your risk, strengthen your coverage and feel more confident when the next storm rolls in.

Improve your home’s resilience

Making your home more resilient is one of the best ways to protect it from costly damage. Targeted upgrades can reduce risk, keep coverage accessible and sometimes even lower premiums. The strategies below focus on practical steps to prepare for wildfires, floods and severe storms.

• Wildfire hardening – Installing ember-resistant vents, clearing brush and using fireproof roofing materials.
• Flood resilience – Includes elevating mechanical systems, installing sump pumps and considering barriers like sandbags.
• Storm prep – Involves upgrading to impact-resistant shingles and reinforcing garage doors.

Review your insurance coverage

Regularly reviewing your insurance coverage ensures you’re prepared for the risks most likely to impact your home. Understanding what is and is not included in your policy can help you avoid costly surprises after a disaster. The points below highlight key areas to check so your protection keeps pace with changing conditions.

• Flood insurance coverage – Check both the National Flood Insurance Program and private options.
• Storm deductibles – Understand your deductibles for hurricanes, wind and hail.
• Additional living expenses coverage – Be sure your policy can cover housing, meals and other costs if you cannot stay in your home after a loss.

Shop smart with a broker

Working with the right insurance professional can make finding the right coverage much easier. A broker can help you navigate complex policy details, spot potential gaps and identify carriers that are financially stable. The tips below can help you shop more confidently and secure protection that truly meets your needs.

• Compare policies – Get clear on price, exclusions and claim service.
• Use an independent broker – VIU by HUB can compare across carriers.
• Ask about carrier stability – A broker can help you choose a financially strong carrier with a solid claims record.

Policy and market solutions

Regulatory innovations include U.S. states blocking non-renewals in wildfire zones. Some are also offering incentives for home hardening, expanding state-backed insurance pools and requiring clearer policy disclosures. Others are fast-tracking approval of new products to help close coverage gaps in high-risk areas.

Climate change is reshaping everything about home insurance, from what’s covered to what it costs to whether you can even get it.

But with the right information, smart strategies and help from trusted experts like VIU by HUB, you can take control of your coverage and protect what matters most.

Wondering what exclusions are in your current policy? Curious if your home is in a rising-risk zone? Need help choosing the right coverage before wildfire season hits?

This is the moment to act. Because insurance only matters when you have it before disaster strikes.