A quarter of residential properties in the U.S. are estimated to be overvalued in relation to their relative climate risk, according to a new report by nonprofit First Street Foundation.
"Our recent research identified the size of the existing climate insurance bubble and found that properties were overvalued by an average of 15 to 30 percent across markets where insurers were already responding to climate risk and pushing property owners to the state-run 'insurers of last resort'," Matthew Eby, the founder of First Street Foundation, toldIn this picture: A home that survived the Mosquito fire is seen surrounded by flames and smoke in Foresthill, an...
The consequences could potentially be disastrous for the housing market, according to the researcher.