Canada Might See Property Insurance Taxes Rise, What About USA?
Just before Christmas, Toronto stayed in the dark for four days in a row. However, having spent so much time in the candlelight was just the beginning of the extreme for Torontonians and Canadians alike.
A lot of cities in the USA, like Avon, Cleveland, Lakewood, North Olmsted, North Ridgeville, Westlake, are also going through the same ordeal as their Canadian neighbors.
The polar vortex which struck the country – and a big part of the USA as well – is now bringing even more problems.
So what else does the polar vortex bring apart from freezing cold temperatures and tons of snow?
It seems that the property insurance taxes might rise. But this is not because of this singular incident. The extreme weather conditions that have occurred during the past years in both Canada and the USA are giving insurance agents second thoughts.
There are more and more storms happening. Tornadoes are getting more severe, cold weather is getting even colder. People are used to extreme events to occur every half of century, but the statistics of the last year’s show that we are about to witness these events every couple of years or so.
Therefore, as weather gets more extreme, so do the property insurance prices.
However, it is not the time to worry about prices going through the roof. Even if we might witness some price increases, these are not going to be abrupt.
What we need to understand at this point is that insurance agencies are, after all, businesses. And if a business cannot make a profit, it goes… out of business. So property insurance agencies are taking the caution measures to help them stay in business. It is the only way they can help people rebuild their homes and properties in case of damage.