California wildfires unlikely to have major effect on Missouri insurance premiums
COLUMBIA, Mo. (KMIZ)
Extreme weather events have been driving up insurance premiums for years.
However, a Columbia insurance agent said Thursday that the Los Angeles wildfires, which have caused billions of dollars in losses, are unlikely to have a direct effect on premiums here in the short term.
The National Oceanic and Atmospheric Administration says there were 27 weather and climate disasters in 2024 with a loss that exceeded $1 billion each. Those losses trickle down, eventually affecting home and auto insurance rates.
The increasing cost can be tied largely price of building supplies, said Jay McClellan with Shelter Insurance. However, the fires shouldn't cause any immediate impact at home.
"Rates are generated in the area where you're located," McClellan said. "In general, in terms of the rates here in Missouri, in particular in Central Missouri, to be even more granular, it shouldn't affect it too much, but it can over time."
Insurance price hikes are most acutely felt in areas where major disasters are frequent, such as California and South Florida. Some large insurers are also leaving those areas.