A recent article in Reuters links global warming to increasing insurance costs for people who live in high-risk areas for hurricanes. Despite the fact that global warming is adding to the annoying intensity of hurricane activity in the Gulf, there’s been a massive real estate boom on the coastlines, even on tiny sand bars miles from shore that no rational person would look at and choose to build a house on. Now a new report from the Allianz Group and the World Wildlife Fund warns that global warming is truly a harbinger of higher insurance premiums.
“This report and other reports are making it clear that there is a direct correlation between climate change, forest fires, storm surges and people's livelihoods,” said Carter Roberts, president of World Wildlife Fund in the United States. “I think right now the U.S. public is waking up to just what an enormous risk this represents for them.”
The report also points out another possibly ill-advised investment. Seeing as the Gulf coast has been a hurricane-magnet for years, many places are basically unable to get flood insurance from any sensible provider, but they still build there. Why? Because they found someone dumb enough to foot the bill – YOU! Or at least your tax dollars, in the form of federally funded flood insurance.
But those of you who live in storm and fire-friendly neighborhoods, take heart: you should see what polar bears are paying these days for life insurance.