Insurance premiums have become costlier for homeowners as insurers have underestimated the effect of climate change.
A First Street Foundation report describes how wildfire-prone states like California, Florida, and Louisiana could see an increase in insurance premiums.
But these aren't the only states that experience the effects of climate change, as the recent fire in Hawaii and flood in Vermont and Main prove.
The insurance industry has had several losses in the past three years due to underwriting.
Many Americans are being insured by state-affiliated plans like California’s FAIR Plan, or Louisiana and Florida’s Citizens property insurance companies.
They are meant to insure properties that were rejected by private insurance companies or were too expensive.
But now programs like California's 50-year-old FAIR plan are the only option for many.
Simply put, an industry built on assessing past events to calculate risk is finding it harder to do just that.