Heatwaves, natural disasters, and soaring temperatures across the globe all point to the fact that climate change is becoming a part of everyday life for many.
The devastating fires in LA, that started in Palisades on 7 January 2025, have affected four areas in the Los Angeles county – Palisades, Eaton, Hurst, and Auto. At the time of writing, LA neighbourhoods have burned for more than two weeks, ravaging approximately 40,000 acres, devastating communities, and destroying homes and businesses.
Meanwhile, in the UK, every year more and more people are experience the damaging effects of floods. Indeed, according to an Environment Agency report, 6.3 million properties in England are at risk of flooding.
4.6 million properties are in areas at risk of flooding from surface water – a 43% increase on the agency’s previous assessment. And 2.4 million properties are in areas at risk of flooding from rivers and the sea.
While you may be doing your bit to help reduce climate change, and every little helps, it’s going to take gargantuan effort and global cooperation before we see any significant impact.
As such, it’s wise to look inward and reflect on how you can best protect yourself from the effects of ever-worsening conditions. Be it fires, floods, storm or wind damage, or indeed any other unexpected life event, having appropriate insurance in place could protect your long-term financial plan, and help you sleep more soundly.
Climate change could increase risk to your property
The effects of climate change could be multifaceted, and may affect your home, car, or business:
- Your house or garden could be damaged due to floods or storm.
- Your car could suffer from falling trees in extreme wind or get caught in flood water.
- If you’re a business owner, property damage may mean you have to close while you repair damage and disruption to supply chains could lead to shortages of materials, potentially affecting your ability to carry out your work.
Since October 2024, the UK has experienced no less than five storms. As we write this at the end of January 2025, it’s not impossible to believe that number will increase by the time this article is published.
The right insurance policy could bring peace of mind
While it may be scary to think about how climate change could materially affect your home or business, it’s sensible to address those risks sooner rather than later.
For example, if your home is in a flood-risk area, you may find you have to pay higher insurance premiums.
The good news is that Flood Re could offer a cost-effective solution.
Flood Re is a team initiative from the government and insurers, and is designed to make flood cover for home insurance policies more affordable
In the event that your home is flooded, having insurance through a Flood Re insurer may also grant you access to as much as £10,000 to protect your home from future floods as part of your damage repairs. So, be sure to ask about this when making a claim.
When it comes to storm damage, not all policies are created equal. Check the small print for exclusions so you know exactly what you can claim for if you’re caught in the brunt.
A thorough plan can provide valuable peace of mind that you’re protected if the worst were to happen. If you’d like to learn more about possible options to increase your home cover, while keeping costs low, please get in touch.
Appropriate insurance could help you mitigate the impact of climate change while providing a firm foundation for your financial plan
When it comes to achieving your financial goals, it’s easy to focus on accumulating assets and growing your wealth. While this matters, it’s equally important to take appropriate steps to preserve your wealth.
Sourcing and paying appropriate premiums for suitable cover can support your financial plan. It can help to:
Protect you against financial loss
Life is full of uncertainty and unfortunate events can lead to substantial expenses. Suitable insurance can protect you from having to use your savings and investments to cover the costs associated with a range of different problems – be it loss or property damage due to fire, storms, or floods, an accident, or medical emergency.
Provide financial security to your family and loved ones
Depending on your circumstances, you may find that insurance provides a comfortable safety net and a certain degree of financial security to your family and loved ones. If you’re the main breadwinner and have young children, or you provide care for a vulnerable relation, knowing you have plans in place to cover unexpected costs or to replace lost income could give you – and them – some welcome comfort.
Enjoy peace of mind
Ultimately, insurance reduces financial stress. Knowing that you have a financial safety net in the event of loss or difficult times brings you a degree of comfort, reducing anxiety and providing more financial freedom.
Evaluate your insurance needs
We can help you to understand what cover is appropriate and how much insurance might provide you with a suitable level of protection.
Taking all your circumstances into account, we’ll explain what cover would be suitable and help you find a policy to match your needs. This may help you to avoid paying for policies that you don’t require or aren’t quite the right fit.
We will:
- Assess how much cover you need
- Find appropriate cover for the best available price
- Explain the policy terms
- Review your cover regularly.
We are here to help
Navigating insurance products can be complex. Not only do you need to understand what and how much cover is suitable for you, but policies also vary greatly between providers. So, even when you know what cover you want to buy, comparing costs and providers can be difficult.
If you’re concerned about the risks you could face, whether as a result of climate change or other factors, please get in touch.
Email contactme@kbafinancial.com or call us on 01942 889 883.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
Note that insurance plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.
Approved by The Openwork Partnership on 24/01/2025.
