How Home Insurance and Climate Change are Upending the Real Estate Market

The Money with Katie Show

Money with Katie

Self-improvement, Education, Business, Investing, How To

4.8 • 1.3K Ratings

🗓️ 19 February 2025

⏱️ 68 minutes

🔗️ Recording | iTunes | RSS

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Summary

The average middle class family has 67% of their net worth tied up in its primary residence. But there’s one looming issue: Rising insurance rates and climate change are threatening those property values—and they might be the canary in the coal mine of the American Dream. We’re joined by Dr. Jeremy Porter, author of the First Street report at the center of most recent insurance analyses. We discuss insurers pulling out of “high-risk” states, “insurers of last resort” in those states, climate-driven migration patterns we’re already seeing, and how this is likely to play out over the next few decades. So yes, this episode is about real estate, insurance, and climate risk—but it’s also about the assumptions underpinning wealth in America, and what it means if they’re changing. Transcripts, show notes, production credits, and more can be found at: https://moneywithkatie.com/climate-change. Money with Katie’s mission is to be the intersection where the economic, cultural, and political meet the tactical, practical, personal finance education everyone needs. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Here's the truth about AI. AI is only as powerful as the platform it's built into. Service Now puts AI to work for people across your business, removing friction and frustration for your employees, supercharging productivity for your developers, providing intelligent tools for your service agents to make customers happier, all built into a single platform you can use
0:22.3	right now. That's why the world works with ServiceNow. Visit servicenow.com slash UK slash AI for people.
0:32.0	We ask people how are you dealing with climate change and people move to Florida. They know there's hurricanes. They know there's flooding. They know there's heat. And they'll say, you know with climate change? And people move to Florida. They know there's hurricanes.
0:38.3	They know there's flooding.
0:39.2	They know there's heat.
0:41.1	And they'll say, you know, climate change.
0:41.8	It floods here.
0:42.6	We knew it flooded here.
0:43.9	And then we say, well, how about the insurance?
0:54.2	And people say, well, that insurance is the way that climate is making its way into the real estate.
0:57.4	If you want good news about the future of home values in your town, ask a local
1:03.0	national association of Releaders rep. And if you want the truth, ask your insurance company.
1:10.7	Actually, you probably don't have to ask them.
1:13.0	Just check your rate. It might be the best harbinger of the future of American real estate
1:19.6	values that we have. Because unlike the lenders and agents, the actuaries employed by
1:27.3	companies like State Farm and Allstate have no reason
1:31.1	to paint a rosier picture the necessary about the future. And their businesses' survival is
1:37.2	contingent upon pricing their risk as accurately as possible. They don't have an incentive to pander to the politics of a region.
1:47.3	As Christopher Flavel and Mira Roginosskel wrote in the New York Times last month,
1:53.7	quote,
1:54.5	nature doesn't really care whether people are living in a blue state or a red state or another state,
1:59.9	or whether you do or don't believe
	...

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