US home insurance costs rose more steeply in areas of climate risk, US Treasury Dept study finds By Reuters

WASHINGTON — Homeowners in areas most prone to hurricanes, wildfires and other climate hazards pay significantly more for insurance than those living in the least vulnerable areas, according to a U.S. Treasury Department study.

© Reuters. A drone view shows a beachside area with homes burned by the Palisades fire and some survivors, in Malibu, California, U.S., January 16, 2025. REUTERS/Mike Blake

The survey found that homeowners living in the most at-risk areas paid an average of 82% more in premiums between 2018 and 2022 than those in the areas least affected by weather events.

Those living in the riskiest areas were also more likely to be dropped by insurers, a study of more than 246 million homeowners’ insurance policies found.

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