A growing trend in the United States shows homeowners forgoing insurance as premiums soar and climate-related disasters intensify.
Key Developments:
Amid rising insurance premiums, a growing number of American homeowners are opting not to carry coverage. Insurers, including major companies like State Farm, are withdrawing from high-risk areas, leaving residents with few, costly options.
The number of uninsured homeowners is climbing, particularly among those who own their homes outright.
Expert Insight:
“It’s very unrealistic for any homeowner to think they can pay for catastrophic losses out of pocket,” said Mark Friedlander, director of corporate communications at the Insurance Information Institute.
Why This Matters:
As climate-related disasters increase in frequency and severity, the lack of insurance leaves communities more vulnerable. This growing trend could delay recovery efforts and complicate rebuilding processes. The situation underscores the urgent need for robust climate action and strategies to mitigate risks and reduce the long-term financial burden of climate-related events.
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