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Frequent weather catastrophes, induced in part by climate change, are bearing down on homeowners and would-be buyers. Here's how consumers can navigate the home insurance market amid increasing climate-driven weather risks:The home insurance market disruption is going to get worseThings are likely to get worse for homeowners and would-be buyers. Also in June, Farmers Insurance became the latest insurer to pull out of Florida, a market that's been roiled with turmoil for many years. Policyholders should expect to pay moreThe average cost of homeowners insurance nationwide is $2,777 a year, with rates varying by state, according to Insurance.com, a consumer comparison service. Already, some homeowners are choosing to roll the dice on ownership without insurance rather than pay increasing premiums.
Persons: Hurricane Ian, Idalia, Ian —, John Dickson, David A, Sampson, , George Hosfield, Rich Sorkin, Stephen Bennett Organizations: Global, Aon, American, Casualty Insurance Association . Insurance, LexisNexis, Allstate, Farmers Insurance, Jupiter Intelligence Locations: Pine, Hurricane, Matlacha , Florida, Florida, California, Cuba, Oklahoma, Hawaii, Arkansas, Louisiana , Nebraska , Iowa , Kansas , Oklahoma , Illinois, Kentucky, Tennessee
But the housing market currently doesn't price that climate risk into home values. The mortgage giant's chief climate officer, Tim Judge, says mortgage underwriting does not currently account for climate risk. To help, Judge is hiring climate risk modeling firms, such as First Street Foundation and Jupiter Intelligence, as well as others, to figure out just how to factor climate risk into home values and mortgage underwriting. First Street, for example, looks at climate risk from floods, fire and wind, and brings it down to an individual property level. But Fannie Mae is not yet rejecting any mortgages based solely on climate risk.
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