How Home Insurers Are Fueling Costs for Americans

Climate change is posing an existential threat to the property insurance market in the U.S., as more frequent and severe natural disasters are forcing carriers to face higher costs—which can end up being passed on to homeowners.

Over the past five years, a series of devastating hurricanes, wildfires and floods have caused insurers in disaster-prone states like Florida and California to either go bust or cut coverage in the most vulnerable areas, in an attempt to avoid climbing costs potentially outweighing profits.

According to an analysis by SEO Amsterdam Economics cited by Insure Our Future, over one-third of weather-related insured losses over the past two decades, totaling $600 billion, can be attributed to climate change.