Overview

• Economist Gary W. Yohe warns that the growing frequency of extreme weather events, linked to climate change, is destabilizing the U.S. property insurance market.
• Major insurers are withdrawing from high-risk areas like California and Florida, forcing homeowners to rely on state-backed insurers of last resort.
• Home insurance premiums have surged nationwide, with rates rising 33.8% between 2018 and 2023 due to escalating disaster risks and repair costs.
• Experts predict a ripple effect on financial markets, as uninsurable properties and plunging property values could trigger broader economic instability.
• The increasing costs of reinsurance and rebuilding, along with regulatory variations across states, further complicate the insurance landscape for homeowners.