How Climate Risk Is Reshaping Real Estate Insurance in 2026

In this episode of The Business of Real Estate, Lucas and Luna explore how climate risk is fundamentally reshaping the property insurance market in 2026. They zero in on a specific case: the 2025 wildfire season in California, which led to a 40 percent spike in premiums for commercial properties in high-risk zones, and how insurers are now using granular climate models to price policies. The hosts discuss the broader shift from historical data to predictive modelling, the rise of parametric insurance for real estate, and what this means for property values in coastal and fire-prone areas. They also touch on the growing trend of self-insurance among large commercial landlords and the role of state-backed insurers of last resort. This episode is essential listening for investors, property owners, and anyone trying to understand how climate risk is becoming a direct financial liability in real estate. #ClimateRisk #RealEstateInsurance #PropertyInsurance #Wildfire #California #ParametricInsurance #ClimateModels #CommercialRealEstate #Premiums #RiskManagement #SelfInsurance #StateBackedInsurer #FAIRPlan #Business #RealEstate #FexingoBusiness #BusinessPodcast #2026 Keep every episode free: buymeacoffee.com/fexingo