Climate change is making a big impact on homeowners insurance in real estate. In recent years, severe weather events have increased. This has put pressure on insurance companies and caused insurance premiums to rise, making them harder for homeowners to afford.
New studies now confirm what many suspected but couldn’t measure before: insurance does help protect homeowners financially after weather disasters. But the coverage often falls short of what is needed, given the size and variety of risks.
Worryingly, insurance costs may soon become too high for many homeowners.
These findings come from a report called “Climate, the Sixth ‘C’ of Credit,” published on May 19 by First Street, a climate risk financial modeling company. The report analyzed many severe weather events since 2000. It showed that most homeowners could avoid financial trouble after wildfires and strong winds. But flooding is a different problem.
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