Why Insurance Companies Are Leaving High-risk Areas and What That Means for You 

In recent years, a growing number of insurance companies have begun pulling out of high-risk areas—regions increasingly vulnerable to wildfires, hurricanes, floods and other climate-related disasters. States like North Carolina have seen major insurers either raise premiums dramatically or exit the market altogether. This trend is driven by the rising cost of claims, unpredictable weather patterns and the financial strain of maintaining coverage in areas where natural disasters are becoming more frequent and severe.

How to Manage Insurance in High-risk Areas

For homeowners and businesses, this shift can be alarming. Losing access to traditional insurance options may mean turning to state-backed insurers of last resort, which often offer limited coverage at higher costs. It can also impact property values and make it harder to secure mortgages, as lenders typically require adequate insurance.

So, what can you do if you live in a high-risk area?

One smart move is to work with an independent insurance broker. Unlike agents tied to a single company, brokers have access to a wide range of insurers and can help you find coverage that fits your needs—even in challenging markets. They can also advise on risk mitigation strategies, such as home hardening or flood-proofing measures, that may make you more insurable.

As climate risks continue to reshape the insurance landscape, staying informed and proactive is key. Whether you’re renewing a policy or buying a new home, understanding your options—and having a knowledgeable broker in your corner—can make all the difference.

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For insurance solutions near you, contact Eastern Carolina Insurance.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.