Home Insurance in an Era of Climate Change

Home insurance has traditionally protected people from catastrophic losses of what is, for many, their most valuable asset. But climate change has contributed to the increasing frequency and severity of destructive weather events and wildfires. Widespread losses stress the solvency of insurance markets while higher premiums contribute to lower rates of coverage. The challenges facing home insurance markets has adverse implications for real estate markets, mortgage providers, people hoping to afford a house, and government programs that provide insurance. David Marlett discusses the sources and consequences of these challenges and strategies for better risk management. David is a Professor of Risk Management at Appalachian State University.