To save the climate, it is best to live on 20 to 30 square meters per person. So I always like it when people do not build new houses.
Currently, the living space per person is still expanding. Seems to be running into a wall or resources or deficit of clean energy.
Insurers Are Deserting Homeowners as Climate Shocks Worsen
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Re: Insurers Are Deserting Homeowners as Climate Shocks Worsen
#22>Communities that are deemed too dangerous to insure face the risk of falling property values, which means less tax revenue
Now that is the funnest quote I have seen in 2024. I would love to know what government will lower your property tax if your house value falls ?
I have never seen that happen ever nor do I know anyone who has seen that happen over the past 40 years.
Re: Insurers Are Deserting Homeowners as Climate Shocks Worsen
#23The climate firms are also faking data to protect their clients home values in places like Florida. The models are so wrong it's ridiculous. The amount of fraud going on from home insurance is astronomical.
What you mean by "climate firms"?
Re: Insurers Are Deserting Homeowners as Climate Shocks Worsen
#24The climate is changing and is affecting regions we knew would be impacted by climate change 30+ years ago. The insurance companies cannot make a profit (and thus would not choose to operate) in these areas now that they're being impacted by climate change. On one hand this seems like the market working exactly as it should be. People should've moved out of these regions in the last 30 years given the information abo…
How do you feel about the denialist argument that since people still buy expensive waterfront property, climate change is not a big deal? My interpretations would probably be some combination of - information asymmetry leading to demand distorting upward - the people who are buying the property have priced in the loss relative to their utility and will be relatively unaffected should they be left holding the watery b…
Eh, people (including me) are very good at optimizing for short-run happiness and less-good at optimizing for longer-run happiness.
A million people a year get arrested in the US for drunk driving...and that's apparently the equilibrium. If that many people are willing to risk their lives and their freedom to save money on an Uber, it's not hard to believe that millions of people would be happy to buy beautiful waterfront property.
The risks are known but not totally apparent.
Re: Insurers Are Deserting Homeowners as Climate Shocks Worsen
#25The climate is changing and is affecting regions we knew would be impacted by climate change 30+ years ago. The insurance companies cannot make a profit (and thus would not choose to operate) in these areas now that they're being impacted by climate change. On one hand this seems like the market working exactly as it should be. People should've moved out of these regions in the last 30 years given the information abo…
I disagree. In my area several insurers have pulled out because of "fire risk" in areas with very little fire risk. (In one case, we're talking about a coastal home, well outside of any 100-year sea-level rise risk, where peak temperatures in the summer are typically in the 65 F, things never dry out, and the house is 4 blocks from the fire station.)
The problem is that the state mandates they use certain maps to assess risk, so the insurance company can't really use their own data to produce maps with higher resolution. So they pull out entirely rather than selling me insurance at a fair value.
That is NOT "the market working as intended". That is state regulation creating a market inefficiency, making people and businesses less able to actually adapt to climate change.
Re: Insurers Are Deserting Homeowners as Climate Shocks Worsen
#26One of my relatives has a single level house directly on a coastal waterway in Florida. Never had any problems since it was built in the 60s, then in 2 of the last 8 years the inside has gotten inundated with storm surge from a major hurricane, requiring a complete interior gutting. Their neighbors houses both got destroyed and now one is on stilts and the other is on a six foot mound.
He keeps repairing because he is a general contractor and the house has history to him.
Re: Insurers Are Deserting Homeowners as Climate Shocks Worsen
#27The climate is changing and is affecting regions we knew would be impacted by climate change 30+ years ago. The insurance companies cannot make a profit (and thus would not choose to operate) in these areas now that they're being impacted by climate change. On one hand this seems like the market working exactly as it should be. People should've moved out of these regions in the last 30 years given the information abo…
How do you feel about the denialist argument that since people still buy expensive waterfront property, climate change is not a big deal? My interpretations would probably be some combination of - information asymmetry leading to demand distorting upward - the people who are buying the property have priced in the loss relative to their utility and will be relatively unaffected should they be left holding the watery b…
The German stock market produced excellent gains in 1933-41. When the Nazi government closed the stock exchange after Stalingrad, the index was near its all-time high. (When the market finally reopened in 1948, German companies were valued some 80% lower.)
Even in large aggregates, investment decisions are ultimately made by people with their own biases. Markets are not infallible predictors of anything.
Re: Insurers Are Deserting Homeowners as Climate Shocks Worsen
#28[flagged]
Re: Insurers Are Deserting Homeowners as Climate Shocks Worsen
#29So if property price drops completely because insurance do not want to insure, it should make buying houses in cash and avoid mortgage easier right? House becomes a cheap commodity, everybody can then buy a house again, insurers can insure them again because they are cheap. The market correct itself. Problem solved?
"A deal too good to be true" will reveal it's ugly head in this case. Insurance wants to cover a near sure thing. You can trick buyers into buying something uninsurable, once. And then they'll be forced to sell at a large loss. Once those stories start making it into media buyers will be far more cautious. Most likely, these houses will get bought by corporations to be rented out. They'll have the resources to self-i…
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Re: Insurers Are Deserting Homeowners as Climate Shocks Worsen
#30The climate firms are also faking data to protect their clients home values in places like Florida. The models are so wrong it's ridiculous. The amount of fraud going on from home insurance is astronomical.
climate firms you got to be kidding me.
BIG CLIMA IS OUT TO GET YA.