The Economist: “In theory, insurance sends a risk signal. Homeowners could expect their policy to be expensive if they live in a floodplain or in a forest. It would be cheaper in places less prone to storms, wind or fire. Yet for decades distortions in federal and state insurance markets have suppressed rates, enabling a mass migration to hazardous areas. The population of Florida, which suffers more hurricanes than any other state, grew more than twice as fast as the country did between 2000 and 2020. Texas, which is vulnerable to storms that form in the Gulf of Mexico, grew even faster… Even more striking, the population in areas most prone to wildfires grew by 160%.”
“While Americans were moving to risky places, climate change was making them riskier. Now private insurers are sounding alarm bells.”
