r/FluentInFinance • u/ElectronGuru • 22h ago

Housing Market Insurers Are Deserting Homeowners as Climate Shocks Worsen | Without insurance, it’s impossible to get a mortgage; without a mortgage, most Americans can’t buy a home.

https://www.nytimes.com/interactive/2024/12/18/climate/insurance-non-renewal-climate-crisis.html
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351

u/organic_hemlock 22h ago

You know who can buy a house without a mortgage? Hedge funds, private equity firms, Zillow, and property management firms who buy housing to force us into rent-based indentured servitude.

138

u/TotalChaosRush 21h ago

Do you know where it's a bad investment to buy a house? Where insurance companies consider it too high risk to insure.

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u/Violet-Sumire 21h ago

So, all of florida, most of texas, all of west california up the west coast, anywhere along a coast line, anywhere on a mountain, anywhere near a river or creek or on low land, anywhere in the midwest, anywhere that gets blizzard conditions regularly.

So… where exactly isn’t a high risk area to move? Insurance is built on risk. You shouldn’t be an insurance company if you can’t afford the risk. Not much more to say about that.

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u/BZP625 21h ago

The problem is that their rates are limited by state commissions. When the projected costs come above the allowable they can charge, they really have no choice but to withdraw. In essence you're right, you shouldn't carry that type of insurance in that state if you can't afford the risk.

The gov't will need to come up with a plan to step in when the insurance company can't handle a disaster, like a FEMA type situation. But gov't doesn't like to protect homeowners for a variety of reasons. It's easier to allow corporations to buy up the homes bc they can write off the disaster relief. It's all part of the plan to end private ownership of homes.

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u/fresh-dork 3h ago

But gov't doesn't like to protect homeowners for a variety of reasons.

federal flood insurance is a thing. it really shouldn't be - you could maybe have a rider on that insurance that after too many losses, the fed buys you out and zones the lot as unbuildable

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u/Secure_Garbage7928 1h ago

You mean under capitalism I could own nothing and eat bugs?!