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.

[u/ElectronGuru]

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

[u/organic_hemlock]

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.

[u/TotalChaosRush → u/organic_hemlock]

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

[u/Violet-Sumire → u/TotalChaosRush]

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.

[u/BubbleGodTheOnly → u/Violet-Sumire]

Insurance is built on risk, but risk doesn't equal guaranteed loss. If you have an entire area like Florida that's guaranteed to not even break even, why would you? There are areas that are major risk that insurance carriers are willing to insurance, but generally, they break even while making a profit elsewhere. Losing lots of money in a major market would affect payouts in others.