What I found was a nation on the cusp of a great transformation. Across the United States, some 162 million people — nearly 1 in 2 — will most likely experience a decline in the quality of their environment, namely more heat and less water.
The challenges are so widespread and so interrelated that Americans seeking to flee one could well run into another. I live on a hilltop, 400 feet above sea level, and my home will never be touched by rising waters.
By comparison, Americans are richer, often much richer, and more insulated from the shocks of climate change. They are distanced from the food and water sources they depend on, and they are part of a culture that sees every problem as capable of being solved by money.
Even where insurers have tried to withdraw policies or raise rates to reduce climate-related liabilities, state regulators have forced them to provide affordable coverage anyway, simply subsidizing the cost of underwriting such a risky policy or, in some cases, offering it themselves.
As a result, Florida's taxpayers by 2012 had assumed liabilities worth some $511 billion — more than seven times the state's total budget — as the value of coastal property topped $2.8 trillion. Another direct hurricane risked bankrupting the state. Florida, concerned that it had taken on too much risk, has since scaled back its self-insurance plan. But the development that resulted is still in place.
On Oct. 9, 2017, a wildfire blazed through the suburban blue-collar neighborhood of Coffey Park in Santa Rosa, California, virtually in my own backyard. I awoke to learn that more than 1,800 buildings were reduced to ashes, less than 35 miles from where I slept. Inchlong cinders had piled on my windowsills like falling snow.
It was no surprise, then, that California's property insurers — having watched 26 years' worth of profits dissolve over 24 months — began dropping policies, or that California's insurance commissioner, trying to slow the slide, placed a moratorium on insurance cancellations for parts of the state in 2020.
Under the radar, a new class of dangerous debt — climate-distressed mortgage loans — might already be threatening the financial system. Lending data analyzed by Keenan and his co-author, Jacob Bradt, for a studyin June shows that small banks are liberally making loans on environmentally threatened homes, but then quickly passing them along to federal mortgage backers.
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