The recent wildfires in Los Angeles have devastated communities, destroyed thousands of structures, and resulted in potential economic losses of $250 billion, making it one of the worst fire disasters in US history. This catastrophe underscores how climate change is rendering homeowners' insurance largely unaffordable or inaccessible in high-risk regions. A moratorium on insurance policy cancellations in affected areas has been announced, revealing a flawed home insurance system. Homeowners face skyrocketing premiums and insufficient coverage, leading to financial strain, particularly on working- and middle-class families.
"The home insurance system in the US is fatally flawed," said Moira Birss, a public policy researcher at the Climate and Community Institute... "The cost of damage that private insurers cannot or will not insure is either being borne by households and leading to individual financial ruin."
In the US, yearly average homeowners' insurance premiums nearly tripled from $536 to $1,411 between 2001 and 2021, largely due to the increased risk in disasters related to planetary heating.
...in many cases, coverage doesn't include events like fire and flooding, which are often sold separately.
I see it as a working- and middle-class issue that is really widespread... we can be talking about many thousands of dollars extra per year.
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