Many of the nation’s largest insurance companies are not renewing policies in climate-stressed areas while raising policy costs at a rate much higher than inflation.  

Fortunately, it is possible to find alternatives. Green America’s Climate Smart Insurance Directory lists local and regional insurance companies in every state.

Local and regional insurance companies are no more risky than large insurers and could save you money for the same coverage.  

Many of these companies have been in business for decades, some for over a century. Examples include American Family Insurance based in Wisconsin, Grange Insurance based in Ohio, and Utica Mutual Insurance based in New York. 

Find home, renters, and car insurance

Once you have the names of a few local and regional insurance companies in your area, contact three independent insurance agents and ask them to quote costs and coverage for policies at local and regional insurance companies.  

The reason to contact more than one agent is that different agents contract with different insurance companies – so talking to several agents will give you an idea of which local and regional insurance companies are in your area. Be sure to contact independent agents rather than agents who work for a single insurance company like State Farm.  

Usually, you can save money by bundling insurance policies. For example, if you own or are paying a mortgage on your home, you can bundle homeowners with car insurance; if you rent, you can bundle renters' insurance with car insurance and save on both.  

Another way to make property insurance more affordable is to pay in monthly installments rather than one lump sum annually.

Finally, ask for discounts from any organizations you are part of such as AAA or an alumni association, or for a good driving record.

Seek adequate coverage

Whether you own or rent, be sure to ask for a quote with adequate coverage for your property. The quote you get should cover: 

• Your dwelling, meaning enough to rebuild your home after a disaster if you are a homeowner 

• Other structures on your property, such as a fence or shed 

• Personal property in your home or apartment, such as furniture, clothing, electronics, and valuables 

• Loss of use, or temporary living expenses while your home is being repaired or while you search for another apartment 

• Personal liability, in case you injure someone or cause property damage unintentionally or through neglect 

• Medical payments, to pay for medical treatment if you, a family member, or a pet injures someone regardless of who is at fault 

Be aware that most homeowners and renters policies do not cover damage due to flooding, earthquakes, animal infestations, fungus or mold, wear and tear, war, or power failure. Ask your agent if separate flood or earthquake insurance is available in your area.   

Next: What to do if your policy is canceled