Climate change is causing disruption in the domestic insurance sector
In a world increasingly affected by climate change, the future of home ownership is under scrutiny, especially in regions like Florida and Colorado where natural disasters such as hurricanes and wildfires are becoming more frequent and intense. This issue is being explored in the latest instalment of The State of Science series, a collection of science stories from public radio stations across the United States.
Host Flora Lichtman is delving into this topic with reporters Jessica Meszaros and Rachel Cohen, as well as Benjamin Keys, to discuss the impact of climate change on the home insurance market in these disaster-prone areas.
In Florida, extreme weather events, fueled by climate change, have led to sharp increases in insurance non-renewals, particularly in inland rural counties around Lake Okeechobee and along the coast. This insurance crisis is causing instability in the market and making it difficult for homeowners, especially those in vulnerable areas, to keep or obtain affordable insurance. Insurers are reacting to the escalating risks and economic losses by pulling out of markets or significantly raising rates, threatening homeowners' financial security.
Meanwhile, in Colorado, the insurance challenges stem mainly from the rising risk of wildfires and severe hailstorms, which have intensified due to climate change. Insurers are increasing premiums drastically or dropping policies to reduce their wildfire exposure. Homeowners in Colorado and other Mountain West states have experienced premium hikes and difficulty securing insurance because of this heightened risk. Many homeowners are also investing in wildfire mitigation efforts to try to lower costs, but insurers continue to tighten coverage.
These developments illustrate a national trend where climate change is leading to higher home insurance premiums, more non-renewals, and reduced insurer availability, especially in regions facing the highest risk of climate-related disasters. This shift is causing a growing affordability and access crisis in these insurance markets.
Reporters Jessica Meszaros and Rachel Cohen have been covering this issue in Florida and Colorado, respectively. Jessica's story focuses on the home insurance crisis in Florida and its connection to climate change, as reported by WUSF. Rachel Cohen and Murphy Woodhouse's story focuses on the home insurance crisis in the Mountain West region. Flora Lichtman is also speaking with Benjamin Keys about the impact of climate change on the real estate market.
As the climate continues to change, it's crucial to address these challenges and find solutions to ensure the stability and affordability of home insurance in disaster-prone areas.
[1] WUSF: Florida's Homeowners Face Skyrocketing Insurance Rates As Insurers Exit Market [2] Colorado Public Radio: Colorado Homeowners Face Skyrocketing Insurance Rates As Wildfire Risk Grows [3] The New York Times: The Home Insurance Crisis in Florida and Colorado
- The increasing frequency and intensity of natural disasters caused by climate change, particularly hurricanes and wildfires, is leading to a home insurance crisis in disaster-prone regions like Florida and Colorado.
- In Florida, climate change is contributing to sharp increases in insurance non-renewals, especially in rural counties, causing financial instability for homeowners, particularly those in vulnerable areas.
- In Colorado, the rising risk of wildfires and hailstorms intensified by climate change is forcing insurers to drastically increase premiums or drop policies, making home insurance unaffordable and hard to secure for many homeowners in Colorado and other Mountain West states.
