Climate-Driven Insurance Crisis Threatens U.S. Housing Market Stability

A Senate report warns that rising insurance costs and nonrenewals linked to climate change could trigger a housing downturn worse than 2008.

The Senate Budget Committee's report highlights how climate change is destabilizing homeowner insurance markets, with nearly 2 million policies dropped since 2018.
States like Florida, California, and Louisiana are experiencing the worst impacts, with skyrocketing premiums and insurers pulling out of high-risk areas entirely.
Rising insurance costs and limited coverage options are making mortgages harder to obtain, increasing the risk of a nationwide decline in property values.
Experts warn that a widespread property value drop could have systemic economic consequences greater than the 2008 financial crisis, as climate risks are permanent and worsening.
Proposed federal measures, such as tax credits for disaster mitigation and a reinsurance program, aim to stabilize the insurance market but face uncertain political support.