Climate change driving home insurance higher

"As hurricanes and wildfires grow more common in some areas, home values go down and insurance premiums go up. Since 2018, a financial shock in the home insurance market has meant that homes in the ZIP codes most exposed to hurricanes and wildfires would sell for an average of $43,900 less than they would otherwise, the research found. They include coastal towns in Louisiana and low-lying areas in Florida."

"The Midwest seems to be hit hard by insurance premiums as well. In parts of the hail-prone Midwestern states, insurance now eats up more than a fifth of the average homeowner's total housing payments, which include mortgage costs and property taxes. In Orleans Parish, La., that number is nearly 30 percent."

Since 2018, homes in ZIP codes most exposed to hurricanes and wildfires sell for roughly $43,900 less on average. Affected areas include coastal towns in Louisiana and low-lying parts of Florida. Insurance premiums have risen across multiple regions, increasing overall homeowner costs. In hail-prone parts of the Midwest, insurance can consume more than a fifth of total housing payments, which include mortgage costs and property taxes. In Orleans Parish, Louisiana, insurance costs approach 30 percent of housing payments. Insurance market shocks and increasing disaster frequency are reducing affordability and depressing property values.

Read at FlowingData