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The climate crisis has put housing policies in check for the economy, with the real estate market being one of the most affected, as insurers, especially in the regions most affected by floods and fires, are raising costs or withdrawing completely. , which affects the affordability and availability of home insurance.
The home insurance policy crisis reveals the alarming increase in meteorological and climate catastrophes in the United States, which last year broke records for frequency and costs, experts said during an information session held by Ethnic Media Services.
Panelists noted that the serious and urgent crisis in the home insurance market is not something that should only concern homeowners, as the indirect effect is likely to be felt in the real estate and mortgage markets, as well as local economies.
Ricardo Lara, insurance commissioner of California, assured that the ?golden state? has a home insurance policy crisis, something that has never been of such magnitude before, which is why it is necessary to reform and innovate.
In this sense, he pointed out that many people cannot find a policy for their home because it is located in risk areas or places that are constantly affected, which is why it has implemented the Sustainable Policy Strategy, a series of changes that must be implemented to resolve this type of crisis.
?We have been operating with regulations from the 20th century for the problems of the 21st century, that affects us in every aspect of our lives, our rules were written outside of the situation we are experiencing now.?, Lara commented.
The Sustainable Policy Strategy, he said, seeks to strengthen the authority of the commissioner and taxes, with a comprehensive approach to improve the interest rate process to protect consumers.
For more information in this regard, he said that interested parties can call 1 800 927 4357 or visit the websites: https://www.insurance.ca.gov/ o www.insurance-research.org.
Vickie Kilgore, associate vice president at The Insurance Research Council, a nonprofit organization that focuses on public policies that impact the home insurance industry, has measured rising policy costs as natural disasters have increased.
The expert explained that 8 variables have been identified in home insurance, and among those that stand out the most are natural disasters, an example of this is Florida, which has a high cost in home insurance due to the risks faced by the been in that matter.
Jordan Haedtler, climate financial strategist at the Sunrise Project and Climate Cabinet, commented that, currently, climate catastrophes are taken into account in home insurance costs, generating a considerable increase in them, while many companies have had to leave. some states where the climate crisis becomes a financial crisis.
The financial strategist expressed his concern about a scenario where insurers do not have the necessary resources to pay people who suffer a natural disaster or who suffer so much damage at the same time that insurers cannot cover them.
Haedtler said that 6.1 billion homeowners do not have insurance and that number is expected to increase as climate change intensifies, as well as the costs of insurance and even the withdrawal of some companies from the market.
Carol Kousky, associate vice president of Economics and Policy at the Environmental Defense Fund, explained that the lack of insurance can increase inequality by showing an increase in the cost of home insurance, causing many people to not be able to purchase any.
Kousky stressed that the financial crisis goes hand in hand with the lack of insurance, since businesses and homes lose everything during a natural disaster and their recovery is very slow, unlike those who have insurance that gives them the solvency to get back on their feet. economy in a locality.
To this, he added the option of transformative investments in risk reduction, which means building houses more resistant to extreme climate changes, since taking care of and reporting the houses depending on the risks that are constantly faced could make the difference in an insurance cost. and obtain a more affordable price.
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