>beginning of the end for coastal
Not just coastal, wildfire areas are also on the chopping block.
Debbie's first thought; How will mortgage underwriters factor in the added risk? Higher rates? Or -more likely- some sort of insurance rider (like PMI) sold by the mortgage company as a required part of the mortgage bundle. That's the same as higher rates but easier to tack on without having to show higher interest rates ...a semi-hidden fee.
>FEMA
Flood insurance is capped at $250k, so that doesn't compare directly. Besides, they're begging for more budget already. But it is noteworthy that mortgages don't require flood insurance in flood zones, so will they treat climate disaster insurance as optional, too? Wrong, my in-house broker says it is required if any part of your house is in a flood zone.
Debbie thinks the states, rather than the feds, will attempt to patch the system for a while with greatly underfunded insurance pools. That'll last for a few years.
