This week’s module made me take a closer look at the economic repercussions of living in coastal zones as temperature and sea levels rise. I have been shopping around for homeowners insurance to insure our new home in North Carolina, which just so happens to be in Currituck County, and though we are extremely close to the Virginia border and away from the water, we are still considered a coastal area. One costly addition has been the extra wind/hail insurance we need for this certain area. An article on USA Today titled “Report: Most insurers not prepared for climate change” discusses the problem of insurance companies not being prepared for the costly weather related damage that will likely increase as a result of global warming. The article states that most insurers are not adequately prepared or planning to handle the changing environment, and the fear is that as storms become more powerful and damaging, insurers will quickly respond with high premiums and some refusing to insure in certain areas vulnerable to storm damage.
Rising insurance costs will not only impact homeowners, but businesses will also be vulnerable to rising premiums and lack of insurance options. This week’s module discussed the Outer Banks, and though the population is relatively small, the tourism is a multi-million dollar business. Rising costs due to global warming will impact residents, businesses, and tourists that travel to these coastal regions. The module also discussed the dilemma over building a bridge to replace Bonner Bridge and the hefty price tag associated with the relocation to protect the structure from tidal energy. Regardless of whether it is insurance or bridges, coastal regions will being paying hefty price tags for rising temperature and seas.
References:
Koch, W. (2013, March 07). Report: Most insurers not prepared for climate change. Retrieved June 26, 2016, from http://www.usatoday.com/story/news/nation/2013/03/07/insurance-industry-climate-change/1968003/