Twelve percent of American homeowners had no insurance in 2024 at all, up from 5 percent in 2019, and as Bloomberg reported in December 2024, more and more of those who could find a policy were getting it from “non-allowed” companies—essentially unregulated firms that had been designed to cover “unique and relatively rare risks, like a fireworks factory or nuclear waste project.” If you can get a new policy, the premiums often rise by a third or more—as the Senate Budget Committee noted drily, “This underscores that climate change has become a major cost-of-living issue for families across the country.” Forget the price of eggs for a minute—insurance premiums are going up 40 percent faster than inflation.
But again, it’s deeper than that. At some point—a point we seem to be nearing—the inability to buy insurance means that the value of homes begin to decline. The latest global estimate is that by 2050 climate change could wipe out almost 10 percent of the value of the planet’s housing stock, or $25 trillion. For most Americans, one’s home is the greatest source of one’s wealth—therefore, as the Budget Committee reported, “any widespread decline in property values would thus present a systemic risk to the U.S. economy similar to what occurred during the 2007– 2008 mortgage meltdown and ensuing global financial crisis.” Indeed, “the difference from 2008 is that the financial system and asset values could and did recover.
McKibben, Bill. Here Comes the Sun: A Last Chance for the Climate and a Fresh Chance for Civilization (pp. 84-85). W. W. Norton & Company. Kindle Edition.
People often wonder “Why is this happening?” They don’t or can’t connect the dots.
House values will decline if they can’t be insured and they can’t be insured because the risk
of damage due to weather events caused by climate change is too high.
Climate change deniers and their supporters don’t get it and when they do it will be too late.
Have you seen an increase in house and renter insurance premiums where you live?
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