Climate Change Has a Premium
If you don’t believe in climate change, your insurance company sure does
Most people in the U.S. own homes and with that ownership comes the responsibility to keep it habitable. Lenders always require a form of insurance as they have to protect the asset. Lately, climate change related weather is causing the insurers to retreat from offering coverage in certain locations.
When it comes to the world of opinion, those who don’t believe in climate change argue it’s all a hoax, while those who do believe in it try to argue with facts. Perhaps instead of mudslinging, we can simply just go to the people who have a dog in this fight, the insurers.
I read a long time ago that insurance companies have to factor in climate change to their forecasting models. If they didn’t, they wouldn’t raise rates and every time there was a payout, they’d lose their asses and eventually be out of business.
Below is a great read that explains in detail how the U.S. insurance industry is impacted by climate change and how it is also connected to our overall economy.
