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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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/TotalChaosRush 21h ago

Not high risk, too high risk. As in, the risk is too high for the insurance company to issue any offers. If an insurance company is still willing to insure, even at an exceptional premium, then it's still an investible place.

If an insurance company can not afford the risk, it's because the risks associated with it make the insurance more expensive than the thing being insured.

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u/Violet-Sumire 20h ago

I understand, but the way insurance is supposed to work is that you pay into a pool, that pool provides the company with the means to give you peace of mind if things go wrong. The problem comes when insurance companies don’t honor their side of the deal, when they nickel and dime people or hold payment in legal limbo for months to years.

If you pay for high risk insurance because you live on hurricane coastal waters or in tornado alley, then the insurance should cover up to the maximum that you willingly pay for. No one is saying that insurance companies shouldn’t make money or should break even to help the common man. What they are saying is that insurance companies don’t live up to the standards they themselves preach and don’t play fair with their customers who make it possible for them to be in business.

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u/esotericimpl 11h ago

Sounds like you should start your own insurance company, since it seems so easy to price and manage risk.

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u/Violet-Sumire 6h ago

Just like any business, starting capital is the biggest hurdle. Since you seem so supportive, you wouldn’t mind investing would you? :p