Insurers such as State Farm and Allstate are leaving fire- and flood-prone areas. Home values could take a hit
Publishing timestamp: 2024-02-05 06:02:01
Summary
Insurance companies are pulling back coverage from fire- and flood-prone areas, leaving homeowners with limited affordable options. This trend may affect the property value of American homes. State Farm and Allstate have stopped accepting new applications for policies in California. The trend is expected to continue across the insurance industry due to the high risk and cost associated with climate catastrophes. Homeowners in California, Louisiana, and Florida are facing a lack of access to insurance. Without insurance, homeowners can find themselves in financial trouble. The insurance landscape in California is particularly tricky due to wildfire risk and a law that restricts the industry from adequately including climate risk in its forecasting. Homeowners who receive nonrenewal notices from insurance companies may lose 12% of their property value. The cost of insurance reflects the risk, and homeowners may need to consider reducing the risk or moving to a less risky area.
Sentiment: NEGATIVE
Keywords: climate, personal finance, business news, homeowner's insurance, environment, chubb ltd, allstate corp, insurance industry, natural disasters, real estate, housing,