From Yahoo Finance: 2025-06-29 12:12:00

Months after California wildfires caused a housing crisis, insurers are pulling out of disaster-prone regions. Federal Reserve Chair Powell warns of future mortgage accessibility issues due to increased extreme weather events. Climate change-driven foreclosures could cost insurers $1.21 billion in 2025. Homeowners face rising insurance premiums and limited coverage options.

Homeowners in disaster-prone states are experiencing a 24% increase in insurance premiums. The top 20% at-risk zip codes pay 82% more than low-risk areas. Premiums surged by 59% in Utah. Insurers like Allstate and State Farm are pulling out of Florida and California. Comparing insurance options can save homeowners an average of $482 per year.

When homeowners’ insurance is canceled, finding affordable replacement coverage can be challenging. FAIR plans provide basic coverage for high-risk areas but may not cover loss of use or liability. Victims of disasters like the Los Angeles wildfires may not receive adequate payouts. Research insurance options before purchasing a home to avoid limited coverage.

Insurers are pulling out of disaster-prone states, limiting homeowners’ coverage options. Rising premiums and decreased availability of insurance are impacting homeowners’ ability to secure mortgages. Climate change-driven foreclosures could cost insurers billions. Consider comparing insurance options to save on premiums and ensure adequate coverage.

Read more: Where Americans can’t get mortgages in the US now