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Insurers Are Deserting Homeowners as Climate Shocks Worsen

nytimes.com

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Re: Insurers Are Deserting Homeowners as Climate Shocks Worsen

#41

Post by Arainach »

A_D_E_P_T wrote: post #7
jddj wrote: post #5

Earlier quoted context omitted.

I would hate this, I think. The relatively low (and I have to tick boxes for most of the high risk industries on the form) amount that I pay each year for what seems to be a nice PI policy is easily worth it for the peace of mind.

I would love it. As things are now, I'm mandated to spend $XXXX/year on insurance that I've never used and know, for a near certainty, that I'm never going to use. I'd really rather not. I've looked at the statistics and, for me, it's a better bet to eschew insurance. (Which, generally speaking, it would have to be, otherwise the insurance industry would be losing money.)

>know, for a near certainty, that I'm never going to use.

That's what most people say right up until they make a claim.

Re: Insurers Are Deserting Homeowners as Climate Shocks Worsen

#43

Post by kylebenzle »

notTooFarGone wrote: post #30
kittikitti wrote: post #20

The 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.

I agree, none of us knows what a climate firm even is though.

Re: Insurers Are Deserting Homeowners as Climate Shocks Worsen

#44

Post by kibwen »

liveoneggs wrote: post #31
japhyr wrote: post #13

Earlier quoted context omitted.

> insurers can insure them again because they are cheap I believe the main part of what the insurance payout covers is rebuilding. And rebuilding is what's expensive, moreso now than ever. So I think housing prices would crash in an uninsurable area because you might be able to buy cheaply, but you couldn't afford to rebuild when something happens. In the end, we'll all be climate refugees?

trailers are cheap to deliver

Trucks haul the trailers in, hurricanes haul the trailers out, and the circle of life continues.

Re: Insurers Are Deserting Homeowners as Climate Shocks Worsen

#45

Post by zdragnar »

jmclnx wrote: post #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.

The quote is tax revenue, not rates.

With such a significant drop in market value (can't get a mortgage on uninsurable property) the properties will just be abandoned, and twice as fast if the taxes aren't reassessed downward.

Re: Insurers Are Deserting Homeowners as Climate Shocks Worsen

#46

Post by potato3732842 »

jasode wrote: post #40
prmoustache wrote: post #4

So 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?

>House becomes a cheap commodity, Houses can't become a "cheap commodity" unless there are revolutionary new construction methods and/or alternative materials. E.g. something like cheap 3D printing of structural walls, ubiquitous robots, pre-fab modular rooms and roofs, etc and cheaper material alternatives to wood, concrete, tile, asphalt shingles. Without a technological leap, traditional construction techniques wi…

> you can buy houses in Detroit for $1 but that does come with other issues:

What neither of your links mention is that these are tax foreclosures or similar transaction and you are typically also buying the liability of back taxes owed on top of all the downsides that the links mention.

Re: Insurers Are Deserting Homeowners as Climate Shocks Worsen

#47

Post by [deleted] »

Enginerrrd wrote: post #25
idbehold wrote: post #11

The 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 ass…

[deleted]

Re: Insurers Are Deserting Homeowners as Climate Shocks Worsen

#48

Post by idbehold »

Enginerrrd wrote: post #25
idbehold wrote: post #11

The 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 ass…

Is another regulation is also preventing the insurers from raising your insurance rates to cover the "fire risk"? Otherwise I'd say the insurer isn't acting logically. I guess I should've said that I believe the insurance companies are acting logically (and thus I don't blame them) instead of saying that the market behaving as it should.

Re: Insurers Are Deserting Homeowners as Climate Shocks Worsen

#49

Post by dylan604 »

liveoneggs wrote: post #31
japhyr wrote: post #13

Earlier quoted context omitted.

> insurers can insure them again because they are cheap I believe the main part of what the insurance payout covers is rebuilding. And rebuilding is what's expensive, moreso now than ever. So I think housing prices would crash in an uninsurable area because you might be able to buy cheaply, but you couldn't afford to rebuild when something happens. In the end, we'll all be climate refugees?

trailers are cheap to deliver

and building codes and/or HOAs will prevent that from happening everywhere

Re: Insurers Are Deserting Homeowners as Climate Shocks Worsen

#50

Post by hatradiowigwam »

ethbr1 wrote: post #34
idbehold wrote: post #11

The 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…

Part of the issue is state boundaries (at least in the US case). If someone moves from Florida to Georgia, or California to Colorado, then the former state loses their tax base (even in FL: sales/corporate tax). So it sets up a musical chairs scenario where the state in question has every incentive to keep the game going. Which will ultimately mean (a) using state revenue to balance out insurance plans and/or (b) out…

Could you elaborate about the outright fraud by Freddie Mac? This is a genuine request for information.
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