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world1d ago
How extreme weather is leaving thousands of homes uninsurable
- Rising climate risks are making many homes uninsurable, raising fears for homeowners and lenders alike.
- Insurance losses push banks to rely on state plans like California Fair Plan as covered risk grows.
- Flood Re in the UK is a government-industry effort to keep flood insurance affordable for high-risk homes.
- Flood Re’s effectiveness is fading as the system faces eventual expiration, risking future affordability.
- Experts warn insurability declines could trigger a domino effect harming banks and the wider economy.
- In Spain and Portugal, governments have provided billions to cope with abnormal rainfall and losses.
- Flood Re’s expansion would require more investment and climate adaptation to keep risk manageable.
- The International Association of Insurance Supervisors warned of potential systemic risk from reduced insurability.
- Analysts suggest resilience and protection measures could mitigate some risk and stabilize housing markets.
- The article emphasizes that climate adaptation is critical to maintain affordable insurance and financial stability.
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