Editorial

Photo: Representatives from different faith groups – including the Rev. Melanie Mullen, The Episcopal Church’s director of reconciliation, justice and creation care – gathered Nov. 14, 2024, in Baku, Azerbaijan, to rally for fair climate financing during the United Nations’ annual climate change conference. Photo credit: Albin Hillert / Lutheran World Federation

St. Columba's Solar Panels by Anna Haight

Climate Change and the Insurance Crisis Excerpt from “Talking Climate” newsletter by Katharine Hayhoe Feb 14, 2025

“Climate change is already eroding home values and driving up insurance costs worldwide. A new analysis by First Street warns that as these trends continue, they could fundamentally disrupt how many people build financial security.

In Australia, for example, 15% of households already pay more than a month’s salary for home insurance, largely due to increasing flood and storm risks. That’s a massive expense that doesn’t even cover mortgage payments, household bills, or other expenses. Within ten years, as many as 10% of all

homes across the country could become un-insurable, one recent analysis warns.

In New Zealand, a recent report, “Premiums Under Pressure,” estimates that 10,000 properties could become un-insurable within 25 years due to coastal erosion and rising sea levels. Unsurprisingly, low-income communities are hit hardest—yet another examples of how climate change disproportionately impacts those who’ve contributed the least to it and have the fewest resources to adapt.

Canada saw record-breaking insurance payouts last year—$8.6 billion in claims from flooding, wildfires and hailstorms, according to the Insurance Bureau of Canada. That’s double the 2023 total and a nearly 400% increase over the last decade. Yet even this staggering figure covers only part of the damage. As this article explains, “many Torontonians lack overland flood insurance, so the $1 billion from this summer’s southern Ontario floods represent only a quarter to a third of the total cost.” As homeowners shoulder the remaining financial burden, it depletes their savings and leaves less to cover bills and mortgage. And it's not getting any better: insurance rates are forecast to spike sharply this year in response.

In some of the most climate-vulnerable areas, insurance companies have stopped issuing new homeowner’s policies and home prices may have already peaked—California being a prime example. I shared a few weeks ago how State Farm had already pulled out of Pacific Palisades, where the worst of the recent LA wildfires began, earlier this year due to increasing risk of wildfire. Across the U.S., 10% of homeowners don’t have insurance.

"The implications are staggering: Climate change is upending the basic assumption that Americans can continue to build wealth and financial security by owning their own home. In a sense, it is upending the American dream," ProPublica’s Abrahm Lustgarten wrote of the First Street report - and I’d say this applies to everyone, not just Americans!

With 66% of American adults owning a home—and home equity representing about 67% of their total savings—there is a lot at stake. First Street predicts that some 55 million Americans could be forced to migrate in the next 30 years due to worsening climate risks.

For generations, homeownership has been a path to financial security in countries around the world. But as climate change reshapes the landscape, that path is becoming increasingly treacherous. The longer meaningful action is delayed—both at the policy level and in how we build and insure homes—the more families will find themselves trapped in homes they can’t afford to protect, insure, or sell.

Sea level rise, wildfires, and extreme storms may pose different threats depending on where we live, but the reality is the same: climate change is loading the weather dice against us. As this Global Weirding episode explains, and this helpful infographic from the New York Times illustrates, climate extremes are increasing everywhere, and they’re putting us all at risk.

What You Can Do

Home insurance is getting more expensive and difficult to obtain—but it’s still an important way to insulate most of us from financial risk. If you’re in the market for a new policy, this excellent Washington Post Climate Coach column is full of helpful tips. Although this resource is U.S.-specific, many insurers use the same principles around the world. Here are some highlights:

• Request a (free!) Comprehensive Loss Underwriting Exchange (CLUE) report for your property, which is essentially an insurance bill of health.
• Consider whether you want to carry flood insurance on your property by finding out your county’s climate risk (here are climate risk atlases for Canada, Australia, New Zealand, the UK and a list of atlases for EU countries) and, if you live in the U.S., checking on the FEMA website to see if your home sits in a 500-year floodplain.
• Work with your insurance carrier to create a customized policy for your property and shop around at different companies to find the best fit.
• Consider weatherproofing your home against the specific climate risks it faces. Some insurers will even give you discounts for this.

People often talk about moving to "climate havens"—places through to be safe from climate extremes. But recent flooding in Asheville, NC—once considered a haven itself—taught us that nowhere is truly safe. No matter where we live or plan to move, we must factor in climate risks. Choosing neighborhoods at lower risk of flood or fire, preparing for extreme heat, having a disaster plan, and investing in strong communities can make all the difference.”

Eco-News Reader Survey

In our last issue we initiated a survey of readers’ interests. Few responded. If you did not get a chance then, here is the link again. Thanks!

IN THE NEWS

In this section we highlight one organization that is contributing to the health of the planet. Last issue we focused on Grove Collaborative's partnership with The Nature Conservancy's Emerald Edge program. This issue we highlight Bioneers an innovative non-profit that for 35 years has pioneered breakthrough solutions for restoring people and planet. It has focused on Restorative Food Systems, Biomimicry, Rights of Nature, Indigeneity and leadership development of Women, Indigenous people and Youth.

Bioneers is an innovative nonprofit organization that highlights breakthrough solutions for restoring people and the planet. Founded in 1990 in Santa Fe, New Mexico by social entrepreneurs Kenny Ausubel and Nina Simons, Bioneers:

DISSEMINATES THE VOICES of breakthrough innovators with practical and visionary solutions for people and planet, connecting people with solutions and each other by providing communications, online media presence and networking platforms for diverse voices inclusive of those often marginalized or excluded.

PROVIDES COMPELLING HOLISTIC EDUCATION FOR ACTION to the public and educators with dynamic programs and initiatives focus on game-changing initiatives related to Restorative Food Systems, Biomimicry, Rights of Nature, Indigeneity.

HIGHLIGHTS COMMUNITY RESILIENCE MODELS to spread successful strategies to build resilience from the ground up locally and regionally.

CULTIVATES LEADERSHIP DEVELOPMENT as all are called upon to be leaders with focus on the leadership of WOMEN, INDIGENOUS PEOPLES AND YOUTH.

INSPIRES A CHANGE OF HEART AND A SENSE OF WONDER AND REVERENCE for the genius of nature and the human spirit.

In addition to award-winning radio and podcast series, book series, Bioneers has had a role in third-party media projects such as Leonardo DiCaprio’s movie The 11th Hour and Michael Pollan’s best-selling book The Omnivore’s Dilemma.

View Registration and information for this year’s conference.

Bioneers is inspiring and realizing a shift to live on Earth in ways that honor the web of life, each other and future generations.

Spiders are much smarter than you think

Cognition researchers are discovering surprising capabilities among a group of itsy-bitsy arachnids. By Betsy Mason 10.28.2021

This story was originally published by Knowable Magazine , a nonprofit publication dedicated to making scientific knowledge accessible to all. Sign up for Knowable Magazine’s newsletter.