WASHINGTON – Homeowners in regions most vulnerable to the devastating impacts of hurricanes, wildfires, and other climate-related hazards face significantly higher insurance costs compared to residents in less exposed areas, as revealed by a recent study published by the U.S. Treasury Department on Thursday.
According to the survey, individuals residing in high-risk zones paid an average of 82% more in insurance premiums between 2018 and 2022 than their counterparts in regions deemed less prone to severe weather events. The analysis, based on data from over 246 million homeowners insurance policies, also identified that those in the most exposed areas were at greater risk of being dropped by their insurance providers.
The findings underscore a concerning trend wherein homeowners in areas facing heightened climate risks are subject to increased financial burdens and potential gaps in insurance coverage, posing significant challenges to their financial security and resilience in the face of natural disasters.
(Reporting by Andy Sullivan; Editing by Chris Reese)
