Climate Change Has a Premium

If you don’t believe in climate change, your insurance company sure does

Aaron McClure
2 min readAug 25


Insurance, climate change,
Great photo by Markus Spiske on Unsplash

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.

Basically what happens is this; if you can’t insure your home and tragedy strikes, you have to fix it yourself, or leave (abandon it) and go elsewhere. This will in turn start to create holes in the economy as people leave, so do businesses, tax revenues fall, schools budgets drop, property values decline, more businesses leave, etc…. you see the trend here.

So whether you believe in climate change or not, your insurance company sure as hell does. If they don’t, they won’t be in that business for too much longer.

As always friends, I welcome an open discussion on any of my articles. If you leave me a message in the comments, I’ll do my best to respond in a timely manner.

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Aaron McClure

Project Manager, blogger, writer. I write about the struggles of life and how to grow as a unique person. I welcome all open discussions.