Climate Threats Could Mean Big Jumps in Insurance Costs This Year
A recent New York Times article highlights the sobering findings from a new report by the First Street Foundation showing that the costs of federal flood insurance will need to increase significantly to cover the increasing risks posed by climate change.
The report found that the National Flood Insurance Program, which provides the vast majority of flood insurance policies nationally, would have to quadruple its premiums to adequately protect high-risk homes in floodplains. By 2050, the report projected a sevenfold increase in premiums would be needed. Because land use and zoning are controlled by local and state governments, flood insurance is considered to be one of the most effective tools that the federal government has to address climate risks to housing.
The report also projects that Bay Area counties will face significant increases in residential flood losses between now and 2051, with San Mateo County facing the highest losses of any county on the West Coast.