What happens when an extreme weather event hits a home where the risk was thought to be nonexistent?

In the aftermath of a wildfire in Fort McMurray—which insurers saw as an example of how climate change is altering the behavior of natural catastrophes—premiums increased

For most home owners, rates aren’t rising—yet. Insurers are now grappling with the tough question of how to reflect new understandings of the underlying risk in premiums.

In the future, climate change may make some homes uninsurable, or at least so risky the cost would be prohibitively expensive for insurance buyers

Increased flood damage presents an opportunity to insurers who expect the market for flood insurance to grow as hurricanes like Harvey and Florence become more common