Canada's financial regulator warns about potential mortgage crises due to rising insurance costs in high-risk climate areas, as evidenced by surging US home insurance premiums.

Peter Routledge, head of Canada’s financial regulator, warned that rising insurance costs due to climate risks may force relocations in high-risk areas. In the U.S., home insurance premiums surged 34% from 2017 to 2023, driven by extreme weather events linked to climate change. This trend could lead to a mortgage crisis as properties become uninsurable, particularly in vulnerable states like California and Florida, raising concerns about financial stability for homeowners.

September 23, 2024
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