Climate Crisis Insurance Catastrophe Threatens US Economy
The climate crisis triggered a residential insurance catastrophe, threatening the US economy. Wildfires, hurricanes, and floods sharply increase insurance claims, with 2024 losses hitting $140 billion globally.Â
Insurers are pushed up premiums sharply. Sometimes, they have pulled out of high-risk areas or extended, abandoning them completely. This included parts of Florida and California, In some cases homeowners are uninsured. The value of uninsured homes undermines their value. This undermined the real estate market and set off mortgage defaults. This threatens a housing crisis like that in 2008 and 2009Â Â
Low Income Problem
Low-income communities face financial ruin as they attempt to make home payments. Most already live on stressed budgets.
The last financial crisis was caused to some extent by short-term low-income mortgages. In the current case, it will be caused by people who cannot protect their homes from a growing number of climate catastrophes.
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