It’s no secret that our climate is changing—and the impact on the insurance market is becoming harder to ignore. 2024 marked yet another record-breaking year for billion-dollar weather disasters, with the economic toll of weather and climate-related events hitting $402 billion. Only $151 billion of losses were insured, largely due to more homeowners self-insuring—either by choice or lack of affordable options—and the rising frequency of extreme weather. These events are harder to predict, prompting insurers to reduce coverage or exit high-risk areas to manage costs and risk.
Extreme weather events like hurricanes, tornadoes, and wildfires are a major part of the story—but we’re also seeing significant weather right here in our own backyard. In Southeastern Wisconsin alone, the National Weather Service has recorded 23 “widespread” or “significant” storms since 2020. Tornadoes, straight-line winds, hail, flooding, heavy snow, and winter storms with wind, snow, and ice have all left their mark—damaging property and stressing the insurance system.
As the frequency and severity of these events increase, the insurance market is adjusting. We’re seeing higher premiums to account for both current and future claims, reduced coverage as carriers manage risk, and in some cases, instability in the market. According to the Insurance Information Institute, the number of U.S. weather and climate disasters causing at least $1 billion in damages has more than doubled over the past decade compared to the previous one—putting unprecedented strain on the insurance system.
In response, many insurance companies are shifting their focus toward weather preparedness and proactive risk management. The landscape is changing quickly, and staying ahead of these trends is critical for both carriers and policyholders.
What can homeowners do?
While we can’t control the weather, homeowners can take meaningful steps to strengthen their position in the marketplace and reduce the risk of future losses. In today’s environment, it’s not just about preparing for a storm—it’s about becoming a more insurable homeowner. Here’s how:
- Inspect your roof and gutters regularly. What used to be routine maintenance is now tied directly to your coverage terms. Many carriers are applying roof age surcharges or limiting wind and hail coverage for older or damaged roofs. Catching issues early helps protect your home and may preserve your access to favorable policy terms.
- Consider installing an automatic water shutoff system. Some insurers are now requiring these devices as a condition for coverage, especially in homes with finished basements or aging plumbing systems. This small step not only prevents costly damage but shows you’re serious about minimizing loss.
- Review your policy regularly—and understand the “why” behind any changes. Replacement cost estimates are being updated more frequently due to inflation and rising construction costs. That could impact your deductible or leave you underinsured. Talk to your M3 Client Executive to make sure your policy reflects today’s realities—not last year’s assumptions.
- Rethink flood coverage. Even if you’re not in a designated flood zone, you may still be at risk. Think back to the 2017 floods or recent heavy rainfalls that left basements submerged across the state. Your standard homeowner’s policy doesn’t cover flood damage—but a standalone flood policy might make all the difference.
These aren’t just defensive moves—they’re strategic ones. Think of it as making yourself insurable in a tough market. By demonstrating that you’re a lower-risk homeowner, you’re more attractive to carriers—and that could mean access to better rates, more coverage options, and less disruption during renewal season.
Key Takeaways
Your assets and lifestyle are unique—so are your risks. Basic coverage isn’t enough in today’s changing environment. Protect your health, home, vehicles, collections, and more with a strategy tailored to you. Partner with M3 Elevate to stay ahead of risk, keep your premiums in check, and maintain access to the coverage you need. A well-maintained home can help prevent future damage—and keep your insurance in place. Connect with your M3 Elevate Client Executive today and take action before disaster strikes.
