Final answer:
Insurance costs are expenses that businesses or individuals pay in order to protect themselves against potential financial losses or damages. In the case of property insurance, businesses purchase insurance policies to safeguard their properties from damages caused by various factors, including extreme weather events. The increased property insurance costs in the U.S. Southeast are a result of businesses needing to protect themselves against the financial risk posed by extreme weather events.
Step-by-step explanation:
Insurance costs are expenses that businesses or individuals pay in order to protect themselves against potential financial losses or damages. In the case of property insurance, businesses purchase insurance policies to safeguard their properties from damages caused by various factors, including extreme weather events. These costs typically involve paying premiums to insurance companies, which are calculated based on the level of risk associated with the property and the likelihood of experiencing a loss.
For example, due to the increased likelihood of extreme weather events in the U.S. Southeast, businesses may face a higher risk of property damage. As a result, insurance companies may increase the insurance premiums charged to businesses in that region to cover the potential costs of any damage that may occur.
So, in this case, the increased property insurance costs are a result of businesses needing to protect themselves against the financial risk posed by extreme weather events.