From California to Florida, homeowners have been facing a new climate reality: Insurance companies don’t want to cover their properties. According to a report released today, the problem will only get worse.
The nonprofit climate research firm First Street Foundation found that, while about 6.8 million properties nationwide already rely on expensive public insurance programs, that’s only a fraction of 39 million across the country that face similar conditions.
“There’s this climate insurance bubble out there,” said Jeremy Porter, the head of climate implications at First Street and a contributor to the report. “And you can quantify it.”
Each state regulates its insurance market, and some limit how much companies can raise rates in a given year. In California, for example, anything more than a 7 percent hike requires a public…