The Climate Crisis Domino Effect

This research paper by the Center for International Environmental Law examines how climate-induced extreme weather is driving an insurance crisis in the United States, which in turn threatens housing affordability and financial stability. The authors argue that insurance companies are exacerbating the crisis by raising premiums to recoup losses while simultaneously reinvesting profits into fossil fuel companies.

• Climate-induced weather events are causing private insurers to withdraw coverage or increase premiums in the US, forcing homeowners toward state-sponsored "insurers of last resort" like Florida’s Citizens Property Insurance Corporation and California’s FAIR Plan. Exposure for these plans grew from $160 billion in 2017 to $633 billion in 2022.
• The insurance crisis is directly reducing property values and threatening homeownership. In California, a nonrenewal notice can decrease a home's value by 12 to 39 percent, and the nonrenewal of over 100,000 policies could result in property value losses between $9.87 billion and $32.1 billion.
• Rising insurance costs are contributing to a broader housing affordability and homelessness crisis in the US. Landlords are passing insurance costs to renters, contributing to a 24 percent average rent increase over three years, while 29 percent of affordable housing providers saw premium increases of at least 25 percent for 2022–23 renewals.
• The inability to secure affordable insurance may trigger a systemic financial catastrophe. Because mortgages require insurance, a lack of coverage can lead to mortgage defaults, devaluing bank collateral and potentially crashing property markets and the wider economy.

APA

Fenlock, L., Slidders, C., & Reisch, N. (2024). The Climate Crisis Domino Effect. Center for International Environmental Law. https://www.ciel.org/climate-crisis-domino-effect/

Chicago

Fenlock, Lindsay, Charles Slidders, and Nikki Reisch. The Climate Crisis Domino Effect. Center for International Environmental Law, 2024. https://www.ciel.org/climate-crisis-domino-effect/.

Wikipedia

{{cite report |last1=Fenlock |first1=Lindsay |last2=Slidders |first2=Charles |last3=Reisch |first3=Nikki |title=The Climate Crisis Domino Effect |publisher=Center for International Environmental Law |date=23 July 2024 |url=https://www.ciel.org/climate-crisis-domino-effect/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fenlock2024climate, author = {Fenlock, Lindsay and Slidders, Charles and Reisch, Nikki}, title = {{The Climate Crisis Domino Effect}}, institution = {Center for International Environmental Law}, year = {2024}, month = jul, url = {https://www.ciel.org/climate-crisis-domino-effect/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }