Home Insurance Disaster -Most Important Climate News 7.19.24

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Oil companies knew about the effects of “industrial expansion” on mankind. According to The Guardian, an article by refiner Marathon Petroleum said, “Although climatologists disagree on the underlying reasons, many see a future climate of greater variability, bringing with it areas of extreme drought.” Although the article did not point directly to Marathon Petroleum’s activities, industrialization was driven for decades by the availability and use of fossil fuels. Climatecrisis247 believes that there are several suits against Big Oil because of the effects of its activities on the environment. Some of these include that the companies knew their operations were damaging the environment. In 2006, Big Tobacco settled similar suits. Their products were bad for people’s health, and they had known about the problem for decades. The settlement in 1998 cost several tobacco companies $206 billion. Those suing the old companies hope for a similar outcome. The challenge of suits against the oil companies is whether they can prove similar damages to humans.

Will Climate Ruin The Olympics? –Probably Yes

Can People Afford Their Homes? –Evictions Rise

Home insurance costs are surging in many places because of climate damage. On the Florida coast, some of these increases are in double digits. In other areas, insurance companies have dropped coverage completely. These problems for homeowners have spread to other parts of the country, including areas in the Midwest threatened by storms, floods, hail, and high winds. The Department of Housing and Urban Development has started a series of meetings to address the increases. Climatecrisis247 believes that the federal government cannot mitigate the risk insurance companies face. The federal government could underwrite losses, but that is the only likely solution they can offer. Some unpaid weather claims have reached billions of dollars. Unpaid climates have reached billions of dollars.

Electricity Costs Rise

People will have to pay more for electricity, and the delivery of that electricity may be interrupted primarily due to climate change. According to The Wall Street Journal, “As the grid becomes increasingly unstable due to age and extreme weather, utilities are ramping up spending on long-overdue maintenance and capital improvements.” Climatecrisis247 believes that the utilities do not have access to enough capital, even when they raise rates to offset improvements that will cost hundreds of billions of dollars. Therefore, service will get worse while bills rise. AI and crypto have added to supply and may raise prices.

Lawsuits over a fire that killed over 100 people in Maui will cost $4 billion. The cost of the settlement could be over $4 billion. Most of this will be money paid by Hawaiian Electric. Downed electric lines have been identified as one cause of the disaster. According to Bloomberg, “The utility has acknowledged strong winds downed electric power lines and snapped power poles, causing a small blaze near the historic town of Lahaina the morning of August 8.” Climatecrisis247 believes this will lift a cloud over Hawaiian Electric, which could have ruined the company financially.