CNBC's Lindsey Jacobson is reporting on major insurance companies leaving states like California due to climate risk.
Insurance companies like State Farm and Allstate are withdrawing from areas prone to fires and floods, leading to a potential decrease in property values. State Farm ceased accepting new policy applications in California due to the high cost of climate-related damages and inflation, while Allstate paused new policies to protect existing customers. This trend, driven by increasing climate risks, is not limited to California but also affects states like Louisiana and Florida. Homeowners face significant financial risks without insurance, as premiums skyrocket or coverage becomes unavailable. For example, a couple in California faced a six-fold increase in their insurance premium, threatening their ability to afford their home. The withdrawal of insurers from high-risk areas underscores the growing impact of climate change on property values and the availability of affordable insurance, highlighting a critical need for risk management and adaptation strategies among homeowners.
Source: CNBC
https://www.cnbc.com/2024/02/05/what-homeowners-need-to-know-as-insurers-leave-high-risk-climate-areas.html
(This article was written with assitance from ChatGPT)
