Understanding the Barriers to Affordable Homeowners Insurance, with Margaret Walls and Penny Liao.

In this week’s episode, host Daniel Raimi brings in Margaret Walls and Yanjun (Penny) Liao to discuss why homeowners insurance prices and nonrenewals are increasing in the United States—and how insurers, homeowners, and state and federal governments are responding. Walls is a senior fellow at Resources for the Future (RFF), director of RFF’s Climate Risk and Resilience Program, and co-host of Resources Radio, while Liao is an RFF fellow. Together, they elaborate on data they shared in the most recent issue of Resources magazine that links areas with previous weather-related property loss to higher premiums and policy nonrenewal rates. As a result, while climate change increases the severity and frequency of extreme weather, many homeowners are left without insurance plans that provide adequate coverage, especially in vulnerable regions such as California and Florida. Walls and Liao analyze why solutions such as “insurance of last resort” plans in the residual market fail to keep up with heightened risk, and where policymakers and communities might look next to support households that are impacted by wildfires, floods, storms, and other disasters across the country.