Soaring Insurance Costs: The Impact of Climate Change on Real Estate Markets

Doug McIntyre shares a story about a friend’s home insurance in South Carolina doubling from $30,000 to $59,000 in one year, highlighting the financial strain caused by climate change. The steep rise in insurance costs forces homeowners to either go uninsured or sell their properties. This situation could lead to a downturn in real estate markets in affected areas, as potential buyers are deterred by high insurance rates. Dave Callaway adds that without insurance, homeowners may violate mortgage terms, leading to potential foreclosure. States are trying to mitigate this by offering insurance to maintain mortgage obligations, but this is not a sustainable solution, and it underscores the broader financial crisis spurred by climate change.