Tag: climate-related losses

California’s FAIR Plan Offers a Lifeline, But Is It Sustainable?

Nordstrom
California Wildfires Costs

California Expands FAIR Plan Insurance Limits Amid Wildfire Risks and Insurer Withdrawals The California Fair Access to Insurance Requirements (FAIR) Plan serves as the state’s insurer of last resort, stepping in to provide essential property coverage when traditional insurers leave high-risk zones. Established in 1968, the FAIR Plan is a private consortium of insurance companies operating under state oversight. It was never designed to replace private insurance but to act as a safety net for those unable to secure coverage due to location or elevated risk factors. Recent years, however,…

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82% More for Home Insurance? Here’s How Climate Risk Is Hitting Your Wallet

Nordstrom
Home insurance costs

Rising Insurance Costs in High-Risk Areas Home insurance costs are soaring across the United States, particularly for those living in areas prone to natural disasters. A new report by the U.S. Treasury Department reveals a stark disparity between premiums in high-risk and low-risk zip codes, painting a concerning picture for homeowners grappling with climate-related challenges. The findings highlight an 82% increase in average premiums for residents in disaster-prone areas compared to their counterparts in low-risk regions. But what’s behind this spike in prices, and what does it mean for homeowners?…

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