Oh Well!! Driven In Large Part By Growing Climate Risks, Avg. US Property Insurance Premiums Up 31% Since 2019
EDIT
The First Street researchers found that climate pressures are the main factor driving up insurance costs. Average premiums have risen 31% across the country since 2019, and are steeper in high-risk climate zones. Over the next 30 years, if insurance prices are unhindered, they will, on average, leap an additional 29%, according to First Street. Rates in Miami could quadruple. In Sacramento, California, they could double.
And thats where the systemic economic risk comes in. Not long ago, insurance premiums were a modest cost of owning a home, amounting to about 8% of an average mortgage payment. But insurance costs today are about one-fifth the size of a typical payment, outpacing inflation and even the rate of appreciation on the homes themselves. That makes owning property, on paper anyway, a bad investment. First Street forecasts that three decades from now the term of the classic American mortgage houses will be worth, on average, 6% less than they are today. They project that decline across the vast majority of the nation, affirming fears that many economists and climate analysts have held for a long time.
Part of the problem is that many people were coaxed into living in the very high-risk areas they call home precisely by the availability of insurance that was cheaper than it should have been. For years, as climate-driven floods, hurricanes and wildfires have piled up, so have economic losses. Insurance companies canceled policies, but in response, states redoubled support for homeowners, promising economic stability even if that insurance required by most mortgage lenders one day disappeared. It kept costs manageable and quelled anxiety, and economies continued to hum.
But those discounts muffled the free market price signals, according to Matthew Kahn, an economist at the University of Southern California who studies markets and climate change. They also slowed down our adaptation, making dangerous places like Floridas coastlines and Californias fire-prone hillsides seem safer than they are. First Street found that today, insurance underprices climate risk for 39 million properties across the continental United States meaning that for 27% of properties in the country, premiums are too low to cover their climate exposure.
EDIT
https://www.propublica.org/article/climate-change-homes-insurance-housing-rent-mortgage