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New Data Shows Insurance Costs Rising and Home Values Sinking as Climate Risks Grow

Susan Crawford

Based on reverse-engineering premium payments from overall escrow amounts for millions of homes, people are paying more for insurance in more physically risky places, independent of rising construction costs and inflation. And they present evidence that houses in areas prone to hurricanes and wildfires are worth less in the eyes of buyers—that there are sizable, lasting reductions in home values in exposed markets.

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