Millions of US homes are underinsured

[Unum]

https://archive.ph/Pw9zX#selection-1361.0-1361.37

The climate-risk research firm First Street Foundation last year estimated
that 39 million US homes — nearly half of all single-family homes in the
country — are underinsured against natural disasters, including 6.8 million
relying on state-backed insurers of last resort.

The issue is that in many parts of the US, insurance premiums don’t reflect
the risk of climate-fueled catastrophes, which is growing as the planet warms.
A record 28 weather disasters in the US last year did $1 billion or more in
damage, according to the National Oceanic and Atmospheric Administration. This
year is on pace to at least match that record, with 15 such events so far — a
tally that doesn’t yet include Hurricane Beryl, which might have caused $30
billion in damage.

Globally, the toll from natural disasters has topped $120 billion so far this
year, the reinsurer Munich Re estimated this week. Only $62 billion of that
was covered by insurance, a figure 70% higher than the long-term average. Most
of this damage happened in the US, and much of it was borne by homeowners.

Insurers have been raising premiums in response to these catastrophes and to
cover the rising costs of rebuilding and buying their own insurance through
companies like Munich Re. Homeowners insurance premiums rose 11% on average in
the US in 2023, according to S&P Global Market Intelligence. They’ve risen by
more than a third in just the past five years. In states on the front lines of
climate change, including California, Florida and Texas, increases have been
even higher.

[JTEM]

Post by Unum
The climate-risk research firm

So a company that can only make money if they invent hysterical
climate "data." Yes.

Post by Unum
First Street Foundation last year estimated
that 39 million US homes — nearly half of all single-family homes in the
country — are underinsured against natural disasters

Because insurance won't cover flood damage.

It's separate coverage.

One peculiar issue is hurricanes where insurers will try to
deny ANY claim, calling it "Flood" damage.

Hurricanes are strongly associated with flooding -- storm
surges for example.

I knew a civil engineer who helped out a homeowner after
Katrina, when his claim was denied. Because the house was
destroyed by WIND DAMAGE.

It was actually built higher than the storm surge!

Another massive problem is that our worthless government
incentivizes the accumulation of single family homes into
a smaller and smaller number of hands, placing a great
deal of upward pressure on prices.

People are "House poor." Meaning, they have too much of
their income going to pay for their housing, so they just
plain do not have enough left over. Well, they can't stop
eating but they can reduce or eliminate insurance coverage...

Finally, this worthless administration is responsible for
a boatload of inflation. People are poorer. Something has
to give and, again, it can't be food...