Climate change and the future of homeowners insurance
Benjamin Keys, economist and a professor of real estate and finance at the University of Pennsylvania’s Wharton School, talks about the future of homeowners insurance.
In a May 2023 New York Time Editorial, Benjamin Keys said, “If you don’t think you’ve been affected by global warming, take a closer look at your last homeowners’ insurance bill. The average cost of coverage has reached $1,900 a year nationwide, but it’s $4,000 a year in New Orleans and about $5,000 a year in Miami, according to Policygenius, an online insurance marketplace. And that is pocket change compared with the impact climate change may ultimately have on the value of your home. We have reached a turning point: Climate risk is driving insurer decisions like never before.”
Benjamin Keys is an economist and a professor of real estate and finance at the University of Pennsylvania’s Wharton School. He explains what is happening with homeowners insurance and climate change.