If you’re struggling to keep cool during those scorching summer days, the good news is that your insurance company won’t raise your rates simply because the mercury in the thermometer is rising.
The bad news is that summertime heat can affect your rates for home and auto insurance. This could force you to spend more on healthcare and can even potentially impact the workers’ compensation system.
The summer of 2024 was the fourth hottest-ever recorded in the United States, according to the National Oceanic and Atmospheric Administration (NOAA).
NOAA said the average temperature for the contiguous U.S. for June through August 2024, a meteorological summer, was 73.8℉ — 2.5 degrees above average — with Arizona, California, Florida, Maine, and New Hampshire seeing their hottest summers ever.
This kind of heat can easily damage your home and vehicle. And an increase in home and car insurance claims from extreme weather caused by rising temps, such as wildfires and thunderstorms, can cause insurance premiums to skyrocket.
Health risks like heat exhaustion and heat stroke could force you to seek healthcare treatment more frequently. Recent studies have shown that increasing temperatures can also lead to more worker injuries.
An independent insurance agency like Garrett Insurance can connect you with the personal or commercial insurance you need and help you understand how to safeguard your assets from rising rates stemming from rising temperatures.
Here’s a closer look at how summertime heat can affect insurance rates.
How Summer Weather Can Put the Heat on Your Insurance Rates
Your insurance premiums could go up if you file a claim for a heat-related event covered by your homeowners or auto insurance policy. They could also go up even if you don’t file a claim — a large number of people in your area filing claims for damage from temperature-related events could prompt such an unexpected increase.
Here are a few types of insurance that could be subject to the effects of extreme heat, which you should discuss with an independent insurance agent:
Homeowners Insurance
A fire caused by extreme heat could damage your home, forcing you to file a claim. Extreme temperatures can also overwhelm your plumbing system, causing it to fail and flood your home.
You may be covered for storm damage (lightning, hail, wind, falling trees, etc.) brought on indirectly from surface heat that contributes to thunderstorms. You may also have protection from direct damage from heat, such as cracked windows.
As the damage increases, an increased number of claims can drive up homeowners insurance premiums.
Auto Insurance
If you have comprehensive coverage, your vehicle might be covered for a wildfire or thunderstorm that affects your home.
However, damage that occurs over time or that could have been prevented with proper maintenance likely won’t be covered. For example, you may not have a valid claim if you fail to check your oil or coolant levels and your car catches fire while you’re driving in the summer heat.
Additionally, you may see a rise in auto insurance premiums due to increased claims in parts of the country where extreme heat generates more frequent thunderstorms and wildfires.
Workers’ Compensation Insurance
According to the Occupational Safety and Health Administration (OSHA), high heat can lead to two types of work-related injuries: direct and indirect.
Extreme heat can directly increase body temperatures, impacting heart rate, respiratory rate, and blood pressure, potentially leading to heat exhaustion, fainting, fatigue, or cramps.
Indirectly, heat can cause problems with perception, motor skills, and cognitive abilities, increasing the risk of accidents, such as falling off a ladder or being hit by a vehicle. All of these effects could lead to an increase in workers’ comp claims, putting pressure on the workers’ compensation system.
Health Insurance
Insurers can’t consider pre-existing conditions for health insurance, so it’s unlikely that being treated for a heat-related illness connected with such a condition would cause your premiums to rise.
However, if you suffer more heat-related illnesses, it could lead to additional medical care during the year, adding to your out-of-pocket costs for coinsurance and copays after meeting your deductible.
An independent insurance agent can work with multiple insurance companies to find you the insurance you need at the right price.
How an Independent Insurance Agent Can Help You Stay Prepared
Turning to an independent insurance agency like Garrett Insurance can help you find the personal or commercial insurance you need for your home, vehicle, or business. Your agent will help you prepare for high temps and the problems they can bring.
Here are a few tips you might get from an independent insurance agent:
- Home: Keep your home cool with reflective materials and attic venting
- Vehicle: Wash and wax your car, and check the fluids, battery, and tires regularly
- Business: Encourage your workers to drink cold water, take breaks, and shelter
An independent insurance agent can be both an advisor and an advocate, offering guidance on how to avoid heat-related damage and illness.
Talk to an Independent Insurance Agent Today
Research shows that average temperatures are rising with every passing decade. Fortunately, you can take action to lessen the impact on your insurance costs.
Garrett Insurance is an independent insurance agency that can help you with your personal or commercial insurance needs. Reach out to us today to speak with a qualified agent.