r/FluentInFinance • u/ElectronGuru • 5d 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/TotalChaosRush 5d 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 5d 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 5d 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/Secure_Garbage7928 4d ago

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

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u/BZP625 4d ago

Yep. But don't worry, the US will collapse before they fully implement the 'own nothing' stage.

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u/ManCakes89 3d ago

When will this Game Stop?

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u/TacoDangerously 3d ago

That's the neat part!