‘Tight correlation’ between premium rises and counties deemed most at risk from climate crisis, experts say

Summary

Climate change is driving up U.S. home insurance premiums, particularly in high-risk areas prone to floods, fires, and storms.

Counties in the top 20% of disaster risk saw premiums rise by 22% from 2020 to 2023, compared to a 13% national average.

Florida faces a crisis with insurers fleeing due to rising risks. The state’s backstop insurer is strained, and limited flood insurance coverage worsens vulnerability.

Nationally, 10% of homeowners now lack insurance, while rising premiums increase mortgage default risks.

Experts warn insurance costs may deter development in disaster-prone areas, requiring stricter building policies to mitigate future losses.