Americans who live in states dealing with fires, high winds and flooding could see insurance rates increase — or lose coverage entirely — as disasters intensify.
Why it matters: The affected areas span from coast to coast and include tens of millions of people living in two of the most populous states — California and Florida.
Homeowner's insurance rates in some of these areas could start to become unaffordable as climate change fuels an increase in destructive storms.
And if insurers decide to pull back altogether, states will need to step in to take on the risk — which can cost individuals more and offer less coverage.
Zoom out: The human toll, damage, and cost of disasters is mounting.
The U.S. saw 28 weather and climate disasters costing at least 1 billion dollars in 2023 — the highest on record. Damages totaled $93 billion.
2024 disaster data is not yet out, though it’s expected to follow the trend.
What to watch: Insurers are changing how they factor climate and extreme weather risks into the premiums they charge for coverage, while some are suspending coverage, Axios’ Brianna Crane reports.
That's pushing many homeowners to opt for public "insurer of last resort" plans — but often at higher rates.