The state of Georgia has a variety of geographical factors that make it a unique state both for the residents of the state but also a challenge for insurance companies. The Peach State experiences humid subtropical climates across the state but in recent years, freezing temperatures have been more frequent, posing a higher risk for homeowners not accustomed to preventative measures needed before frigid weather.
Policy holders in this state are well acquainted with frequent tornado activity making it one of the leading states for tornadoes at an average of 30 per year, leading to thousands homeowners insurance claims and millions of dollars in losses. The Southern part of Georgia turns coastal resulting in different hurdles for homeowners. Vulnerability to hurricanes continues to impact homeowners with the high wind and hail damage to homes that typically occur from these major storms. As the storm reaches the northern part of the state as it moves inland, many area have a high risk of flooding .
Georgia has a state pool, the Georgia Underwriting Association, or commonly referred to as the Georgia FAIR Plan that is available to Georgia residents. The FAIR Plan is for homes or commercial buildings that are in need of coverage when declined due to high risk making it difficult in the private market to obtain coverage. As with all FAIR Plans, consumers are urged to try to find coverage in the private market.
Many insurance companies now have responded with different deductibles, surcharges or credits for consumers, not only based on the age of the roof, but now the type of roof and materials. Between state plans and a healthy private market, Georgia has a competitive homeowners insurance marketplace. As time goes on, consumers will find themselves more and more looking toward mitigating risk both to protect their futures and their insurance premiums.