Heavy rainfall flooded portions of Hallandale Beach, Florida, in June 2024.Matias J. Ocner/Floodlight via Miami Herald
This story was reported by Floodlight, a nonprofit newsroom that investigates the powerful interests stalling climate action.
When Miguel Zablah bought his five-bedroom home in Miami’s leafy Shenandoah neighborhood in June of 2020, he said he paid $7,000 a year for homeowner’s insurance.
The house, built in 1923, sits on high ground and has survived a century of famously volatile South Florida weather. But in just four short years, Zablah said his homeowner’s insurance premium has more than doubled to $15,000 a year. Quotes for next year’s premiums are looking even worse.
“Some insurance companies are now quoting me at $20,000, $25,000 on my house, which is ridiculous,” said Zablah, who works in private equity. The premium increases are so steep that he’s considering just paying off his mortgage—and foregoing the insurance that his lender requires him to carry. “I’m very grateful that I’m in a good position,” he added.
Zablah’s premium increases are a symptom of a broader insurance crisis plaguing real estate markets across America. Experts say it’s fueled, in large part, by the disastrous effects of human-caused climate change.
Flooding is more frequent. Higher temperatures stoke stronger hurricanes. Wildfires burn more acres. And Americans have spent generations moving to sunny places that are often the most in harm’s way, including Florida, Texas, and California.
In Louisiana, some residents along coastal Highway 56 have decided to leave, in part, because they can’t get coverage.
So, the cost of insuring homes against natural disasters is spiking along with atmospheric temperatures and carbon dioxide levels.
Now, new research shows that higher insurance premiums like the one Zablah is paying significantly increase the probability of people falling behind on their mortgages—or motivate them to pay........