How Is Japan Affecting Your Home Insurance In Connecticut?

by owner

Category: Our Blog

It may seem like Japan is a world away, but the truth is
that events there may affect your life more than you realize! As you probably
remember, the earthquakes in Japan were a major catastrophe. That, together
with all the other disasters in the first half of 2011, are making insurers
very nervous.

According to a
recent article from Bloomberg
, the first half of 2011 cost insurers about
sixty billion dollars. That’s billion.
With a ‘B.’

This is especially concerning to insurers because the first
half of the year tends to be less expensive than the second half. With the
upcoming hurricane season about to start, most insurers are already coming
close to their estimates for the whole of 2011, and some have already exceeded
their 2011 budgets.

Even more, this Atlantic hurricane season is predicted to
have more than the average 11 named storms, meaning that these insurers that
have already been hit harder than they can afford, are preparing for even more
of a loss than usual in the second half of the year.

So how does this affect the everyday American? The increased
predicted hurricane rate is due to a different model being used to forecast hurricanes.
This new model has increased the risk level for almost all homes in coastal
states. This will in all likelihood affect Connecticut
home insurance

Even more inland areas of states are predicted to have
increased risk. Even if the model were to predict an area to have increased
winds, this could affect home insurance rates. Connecticut homeowners, and
homeowners across the US, are encouraged to prepare for the increased risks
this hurricane season may bring.

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