The Big Take

State Home Insurance Programs Are Sitting on $1 Trillion in Risk

On today's Big Take podcast: the growing risk of climate disasters is pushing more people into home insurance "plans of last resort.” But are these plans ready to cover the costs of the next major catastrophe?

Smoke rises from the 2020 Cal-Wood Fire as it burns in Boulder County, Colo. Wildfires have made the state increasingly unprofitable for private insurers.Photographer: Matthew Jonas/MediaNews Group/Boulder Daily Camera/Getty Images

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By Adriana Tapia Zafra and Sarah Holder

March 5, 2024 at 11:17 PM UTC

This article is for subscribers only.

Listen to the Big Take podcast on iHeart, Apple Podcasts, Spotify and the Bloomberg Terminal.

As climate risks grow, some private home insurance providers are retreating from US regions most vulnerable to catastrophe. And homeowners who can’t get coverage through the private market are increasingly turning to insurance “plans of last resort,” created by states.