climate risks fuel insurance costs squeezing us households even inland

Climate-related disasters are driving up US homeowners insurance premiums, squeezing household budgets even in inland states. The channel is regulatory/underwriting repricing: insurers are raising rates to reflect increased catastrophe risk, leading to higher costs for consumers and potential underinsurance. This directly impacts household disposable income and housing affordability, with implications for consumer spending and real estate values. The mechanism is strongest for US property & casualty insurers and homeowners, but also affects mortgage lenders and homebuilders via demand shifts.