Climate Insurance Costs Soar, Threatening Real Estate Nationwide
Surging Insurance Costs Challenge Homeowners Amid escalating climate threats, the costs of insuring homes against natural disasters have surged dramatically. This poses significant challenges for the U.S. real estate market. As climate-driven risks grow, insurance affordability has become a significant concern for homeowners across the nation. Premiums for homeowners insurance have been climbing swiftly. An 8.7% increase above inflation from 2018 to 2022 underscores this trend. This financial strain is not uniform. Regional variations indicate that some areas endure substantially higher hikes than others, especially those prone to climate-related events. Understanding demographic shifts, such as the movement of young professionals and digital nomads toward different urban locales, complements the analysis of the insurance market challenges. The persistent frequency of natural disasters, which now frequently result in insured losses exceeding $100 billion annually, compounds the issue....