Heavy storms drive up insurance premiums as materials costs increase
COLUMBIA, Mo. (KMIZ)
A line of storms are expected to move into Mid-Missouri on Wednesday, producing potential for damaging wind and hail.
And it's storms like these that help drive up insurance costs for homeowners.
Data shows the primary driver of homeowners' insurance cost increases is weather-related losses, according to the Missouri Department of Commerce and Insurance. An increase in homeowners' claims has caused insurance companies to increase their rates, according to the department.
"I'm talking about labor costs, I'm talking about costs and materials and those kinds of things. Now, when you have a large storm, take for example Ian that hit Florida, back in the fall, and you've got a lot of labor, you've got a lot of materials going down there, that's going to generally increase the cost of those nationwide," said Jay MacLellen with Shelter Insurance.
The department recommends homeowners review their policies to ensure they cover severe weather damage losses.
"And the other real big key I think, is for people to actually look at their and have an open conversation with their insurance agent about their insurance policies. A lot of people don't realize that they may have a policy that, you know, if they do have a hailstorm, it's actually going to cost them a lot of money," said Chase Roscher, co-owner of Zucca Daughters and Sons Roofing.
A shortage of materials and skilled workers has also driven up costs. Severe weather in various parts of the nation has led to a decrease in raw materials, according to a LinkedIn post from Prrotect Roofing in St. Louis.
"And what's interesting about roofing supplies and costs is when we start having hail storms all over the country, there's only so many shingle manufacturers, so a lot of the inventory that those plants are producing goes to those storm damaged areas. So it's harder for us to get trucks here," Roscher said.
The ABC 17 Stormtrack Weather Team has called a Weather Alert Day for Wednesday because of the potential of strong storms.
