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Climate Change Drives Up Insurance Costs and Availability in Florida as Extreme Weather Risks Rise

  • Climate change is exacerbating risks like flooding and storms, making insurance more expensive and leading some companies to withdraw from states like Florida.

  • In Florida, smaller insurers reliant on pricy reinsurance have replaced big national companies, making rates more vulnerable to climate factors.

  • Florida had a record $60 billion in insured losses after Hurricane Ian, which depleted reserves and will keep rates high barring a calm hurricane season.

  • Insurers say lawsuits and fraud, not climate, are behind soaring Florida premiums, but acknowledge climate as a growing long-term threat.

  • If insurance becomes unaffordable in risky areas, it could lower demand and home values, creating a climate "insurance bubble."

miamiherald.com
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Frequent weather catastrophes, fueled by climate change, are causing disruptions in the home insurance market, with insurers pulling out of high-risk areas, raising prices, and reducing coverage, leading to tougher choices and higher costs for consumers.
The increasing risks of extreme weather events from climate change are causing insurance companies to raise rates and pull back from high-risk areas, which could potentially lead to losses for banks that rely on insurance-backed collateral for loans.
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