Homeowner Insurance may be cancelled

[Don M.]

As a result of more major disasters in some parts of the nation, insurance companies will be cancelling a lot of home owner policies in coming months in certain areas.

Home insurers cut natural disasters from policies as climate risks grow

 

[fuzzybuddy]

The whole idea of insurance is to spread the cost of a loss over many others for a small sum. It is a business based on the Law of Large Numbers. If the odds for a loss are high, insurers have to drastically raise rates, or get out of selling insurance to risky clients. The income from multiple customers has to be, at least, equal to benefits paid. To be honest, no insurance company has the financial deep pockets to cover the multi-billion dollar loss from hurricanes, without massive rate increases.

 

[Remy]

I wonder how this is going to end? People can't buy because they can't afford the insurance on top of everything else, house payment etc?

 

[Don M.]

I wonder how this is going to end? People can't buy because they can't afford the insurance on top of everything else, house payment etc?

Climate Change, rising oceans, and increased fire dangers are going to cause a major migration of our populations in coming years. Anyone living (owning property) in low lying coastal regions, or in areas prone to drought/fire will soon find their insurance costs soaring, and their property values plummeting.

 

[VaughanJB]

Climate Change, rising oceans, and increased fire dangers are going to cause a major migration of our populations in coming years. Anyone living (owning property) in low lying coastal regions, or in areas prone to drought/fire will soon find their insurance costs soaring, and their property values plummeting.

There's a big move in the UK to build more homes, since at the moment homes aren't affordable to normal folk. The trouble is, they're building wherever they can, which includes flood plains. There have been a few instances thus far of "new" homes (a few years old) being flooded.