PITTSBURGH (KDKA) — For many homeowners across the country, climate change could make their insurance dramatically more expensive in the coming years — or they could lose their coverage altogether.
We have an exclusive look at the growing concern, using new data from the First Street Foundation, a nonprofit that tracks climate and insurance trends.
CBS News correspondent Ben Tracy shows us the places in our region that are most at risk.
Many homeowners in states like Florida and California are already facing this insurance crisis. But it is likely to affect people in the Pittsburgh area for years to come.
According to First Street, it’s becoming more expensive to insure property because of natural disasters exacerbated by climate change.
CBS News analysed their data and found the counties most at risk of flood damage.
In Washington County, 12 percent of properties are at risk of higher insurance premiums or losing coverage. In Westmoreland County, 11 percent of properties and in Allegheny County, 7 percent of homes could have trouble finding affordable insurance.
And looking ahead, 30 years from now, Lawrence County is expected to see the largest increase in the number of homes at risk.
“We’re at a unique point where climate change is intersecting with economic conditions, including inflation, the cost of reinsurance, the cost of construction. All of these things together are actually costing insurance companies a lot more in terms of the claims they’re paying out, which means they either have to raise their premiums to make more money, or they have to stop offering coverage,” said Jeremy Porter of the First Street Foundation.
According to the First Street report, natural disasters exacerbated by climate change are making it so expensive to insure homes that homeowners could end up paying sharply higher premiums or even lose their coverage altogether. CBS News analysed First Street’s data to find the three counties in the Pittsburgh metro area that are currently most at risk of a severe insurance “correction”.
The risk is calculated from a combination of factors, including damage from wind, fire and flooding. The primary source of risk for the Pittsburgh area is flood, which accounts for 100 percent of all properties currently at risk.
First Street predicts that in 30 years, the primary source of risk will continue to be flood, accounting for 100 percent of all properties at risk.
Allegheny County
- Properties now at risk: 41,476 or 7% of total properties.
- Thirty-year projection: 42,404 or 7% of total properties.
Westmoreland County
- Properties at risk now: 19,900 or 11% of total properties.
- Thirty year projection: 20,138 or 11% of total properties.
Washington County
- Properties at risk now: 13,532 or 12% of total properties.
- Thirty year projection: 13,746 or 12% of total properties.
By 2053, the county with the largest increase in risk will be Lawrence County:
- Properties at risk now: 4,109 or 7% of total properties.
- Thirty year projection: 4,319 or 8% of total properties.
- Percentage change in properties at risk over 30 years: 5%
