The ESG Initiative at the Wharton School
Your Homeowners’ Insurance Bill Is the Canary in the Climate Coal Mine
Outlet: New York Times
Wharton Prof. Benjamin Keys shares how climate change is reshaping the market for homeowners insurance, and the broader implications for homeowners.
If you don’t think you’ve been affected by global warming, take a closer look at your last homeowners’ insurance bill: The average cost of coverage has reached $1,900 a year nationwide, but it’s $4,000 a year in New Orleans and about $5,000 a year in Miami, according to Policygenius, an online insurance marketplace. And that is pocket change compared with the impact climate change may ultimately have on the value of your home.
We have reached a turning point: Climate risk is driving insurer decisions like never before.