Kentucky
More frequent natural disasters impacting insurance rates in Kentucky
LEXINGTON, Ky. (WKYT) – Natural disasters are happening more often.
According to LendingTree, Kentucky has seen a 185 percent increase in natural disasters in the last 20 years. This increase is above the national average.
In just the last two years, Kentucky has recorded several billion-dollar events. These events include the December tornado outbreak in western Kentucky in 2021, the historic flooding in eastern Kentucky in July of last year, and the March 3rd windstorm that impacted nearly the entire state.
These natural disasters are impacting insurance rates.
“Weather has a huge impact on homeowner’s insurance. The last year, I would say there have been so many events that have taken place. Flooding in eastern Kentucky, we’ve had tornadoes in western Kentucky, we’ve had extreme cold,” said Brooke Whalen, agency owner of Brooke Whalen Insurance.
Whalen said the weather has really changed.
“I’ve been in insurance for 12 years, and looking at the last 12 years, weather has never been like it has been in the last two years; I feel like there’s been a huge movement,” said Whalen.
Whalen said wind and hail have the most impact on claims in the Blue Grass. It’s been difficult to try and keep up with the costs of natural disasters.
“Unfortunately, insurance can only stay a certain price until we have so many catastrophic events that the insurance companies are losing money,” said Whalen.
So what can you do?
“A big thing that people can do right now is increase deductibles anywhere from $1,000-$2,500. That would make a big impact. A lot of carriers now offer wind and hail deductibles which will also adjust that pricing,” said Whalen.
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