Climate change crushes insurers

Americans in disaster-prone areas are running low on options for their insurance providers.

Both California, which has been plagued by wildfires, and Florida, at risk for flooding and wind damage, have seen record numbers of policies written with their state-run programs.

Citizens Property Insurance of Florida and California's FAIR Plan are designed to insure properties when a homeowner is unable to get insurance in the private market. These policies give basic protection and are often funded by a pool of funds collected by all insurers in each of the states.

Other states like Louisiana and even less disaster-prone states have seen increases in the number of homeowners on these plans of last resort. Insurers have cited the increase in weather-related catastrophes in the last 10 years — more wildfires, more intense storms — as the reason to pull out of certain markets. Also insurance companies' costs have risen with the cost of reinsurance.

Homeowner's insurance is oftentimes required to get a mortgage, so expensive insurance plans make home ownership more expensive overall.