Young Canadians are taking climate change risks more seriously when buying homes
BNN Bloomberg
A new survey has found that 60 per cent of young homeowners (18-34) considered the potential effects of climate change in the location they were buying their home. That compares to 31 per cent of those 35-54, and just 27 per cent of those over the age of 55.
Major insurance companies around the world have been sounding the alarm for years about the rising costs of insuring homes in areas that are more at risk for extreme events fuelled by climate change, including floods and forest fires.
In the U.S., Florida and California have been two markets where many homeowners have been shocked to discover no insurance companies will insure them, or the ones that do, charge prices that are impossible for the average homeowner to afford. In May, State Farm announced it would stop issuing new insurance policies in California — not just in areas at risk of wildfires, but throughout the entire state.
Insurance companies cover the cost of paying out claims from the premiums they charge customers. If claims exceed premiums, then the insurance company is not a viable business. Unfortunately, the extreme weather events accelerated by human-induced climate change have led to rapidly rising claims for insurance companies.
