Homeowners are increasingly priced out of insurance coverage as climate change drives extreme weather events, forcing insurers to raise rates or withdraw from high-risk areas.
Michael J. Coren, Naema Ahmed Kevin Crowe report for The Washington Post.
In short:
- Rising extreme weather and economic pressures have caused U.S. home insurance premiums to jump over 30% since 2020.
- Many insurers have stopped offering policies in high-risk states like California, forcing homeowners to rely on expensive state-run plans.
- About 10% of homeowners are now forgoing insurance altogether due to unaffordable costs.
Key quote:
“Because the risk is going up, prices will go up.”
— Nancy Watkins, insurance risk analyst for the global consulting firm Milliman
Why this matters:
Soaring insurance costs driven by climate risks are making homeownership increasingly unaffordable. As insurers retreat from vulnerable areas, more Americans face difficult decisions about whether to stay or sell their homes, reshaping where people can afford to live.
