The growing void in the U.S. homeowners insurance market: who should bear the rising cost of climate change?
Abstract Homeowner insurance is a cornerstone of modern society. It underpins broader housing markets, provides financial security for families and individuals, and is a source of resilience for communities recovering from disasters. However, climate change and urban development in hazard-prone area...
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Nature Portfolio
2025-04-01
|
| Series: | npj Climate Action |
| Online Access: | https://doi.org/10.1038/s44168-025-00231-8 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1850183815973044224 |
|---|---|
| author | Mona Hemmati Ian P. Gray Steven G. Bowen |
| author_facet | Mona Hemmati Ian P. Gray Steven G. Bowen |
| author_sort | Mona Hemmati |
| collection | DOAJ |
| description | Abstract Homeowner insurance is a cornerstone of modern society. It underpins broader housing markets, provides financial security for families and individuals, and is a source of resilience for communities recovering from disasters. However, climate change and urban development in hazard-prone areas are undermining this critical institution, forcing private insurers to retreat from high-risk regions and leaving homeowners in the lurch precisely when they are most in need of coverage. This perspective explores the cascading effects of this crisis and advocates for a multi-faceted set of reforms that address three interrelated problem domains—enhancing innovations in pricing and underwriting, improving transparency of data and risk assessment practices, and bolstering resilience of the built environment—to ensure sustainable protection for the future. |
| format | Article |
| id | doaj-art-d24c3b4033d448669335cde5624016fa |
| institution | OA Journals |
| issn | 2731-9814 |
| language | English |
| publishDate | 2025-04-01 |
| publisher | Nature Portfolio |
| record_format | Article |
| series | npj Climate Action |
| spelling | doaj-art-d24c3b4033d448669335cde5624016fa2025-08-20T02:17:13ZengNature Portfolionpj Climate Action2731-98142025-04-01411710.1038/s44168-025-00231-8The growing void in the U.S. homeowners insurance market: who should bear the rising cost of climate change?Mona Hemmati0Ian P. Gray1Steven G. Bowen2Lamont-Doherty Earth Observatory, Columbia Climate School, Columbia UniversityLamont-Doherty Earth Observatory, Columbia Climate School, Columbia UniversityGallagher ReAbstract Homeowner insurance is a cornerstone of modern society. It underpins broader housing markets, provides financial security for families and individuals, and is a source of resilience for communities recovering from disasters. However, climate change and urban development in hazard-prone areas are undermining this critical institution, forcing private insurers to retreat from high-risk regions and leaving homeowners in the lurch precisely when they are most in need of coverage. This perspective explores the cascading effects of this crisis and advocates for a multi-faceted set of reforms that address three interrelated problem domains—enhancing innovations in pricing and underwriting, improving transparency of data and risk assessment practices, and bolstering resilience of the built environment—to ensure sustainable protection for the future.https://doi.org/10.1038/s44168-025-00231-8 |
| spellingShingle | Mona Hemmati Ian P. Gray Steven G. Bowen The growing void in the U.S. homeowners insurance market: who should bear the rising cost of climate change? npj Climate Action |
| title | The growing void in the U.S. homeowners insurance market: who should bear the rising cost of climate change? |
| title_full | The growing void in the U.S. homeowners insurance market: who should bear the rising cost of climate change? |
| title_fullStr | The growing void in the U.S. homeowners insurance market: who should bear the rising cost of climate change? |
| title_full_unstemmed | The growing void in the U.S. homeowners insurance market: who should bear the rising cost of climate change? |
| title_short | The growing void in the U.S. homeowners insurance market: who should bear the rising cost of climate change? |
| title_sort | growing void in the u s homeowners insurance market who should bear the rising cost of climate change |
| url | https://doi.org/10.1038/s44168-025-00231-8 |
| work_keys_str_mv | AT monahemmati thegrowingvoidintheushomeownersinsurancemarketwhoshouldbeartherisingcostofclimatechange AT ianpgray thegrowingvoidintheushomeownersinsurancemarketwhoshouldbeartherisingcostofclimatechange AT stevengbowen thegrowingvoidintheushomeownersinsurancemarketwhoshouldbeartherisingcostofclimatechange AT monahemmati growingvoidintheushomeownersinsurancemarketwhoshouldbeartherisingcostofclimatechange AT ianpgray growingvoidintheushomeownersinsurancemarketwhoshouldbeartherisingcostofclimatechange AT stevengbowen growingvoidintheushomeownersinsurancemarketwhoshouldbeartherisingcostofclimatechange |