Severe Weather Has Home Insurers Rethinking Coverage

The April 2012 edition of InsuranceJournal.com notes that, as weather disasters occur more frequently, homeowners are often hit with the unexpected loss of homeowners insurance policies as insurance companies re-evaluate their financial liabilities.

Michael Barry of the Insurance Information Institute, an industry group, observes that “last year (2011) was an extraordinary year for natural disasters; Insurers have taken a step back to assess whether or not they can absorb severe losses.”

Insurance companies have significantly and methodically decreased their financial responsibility for weather catastrophes like hurricanes, tornadoes and floods in recent years,” the Consumer Federation of America said in a statement after studying industry data.