Rising Climate Risks Render Some US Homes Uninsurable

Rising climate change risks, including wildfires and floods, are making homes in parts of the U.S. "essentially uninsurable," leading to skyrocketing insurance rates and coverage withdrawals by insurers. About 35.6 million properties, or one-quarter of all U.S. real estate, face increasing insurance prices and reduced coverage due to high climate risks. The higher costs not only strain homeowners' budgets but also devalue their properties. Major insurers have stopped renewing policies in climate-hit states, leaving homeowners to rely on state-run "insurers of last resort" programs that often provide less coverage at higher premiums. The insurance industry attributes the rising costs to the increasing frequency and severity of claims. As a result, homeowners in high-risk regions are either struggling to afford insurance or forgoing it altogether, leading to potential property devaluation.