A $1 Trillion Time Bomb Is Ticking in the Housing Market
Millions of US homes are underinsured because their premiums don’t reflect the risk of climate-fueled catastrophes.
US homeowners’ wildfire and flood risks are underinsured by $28.7 billion a year.
Photographer: David McNew/Getty Images
Cassandras seldom get opportunities to be right about two disasters. Even the original Cassandra scored no notable victories after predicting the fall of Troy. But when a seer who successfully called one catastrophe warns of another coming, you might want to listen.
Years ahead of the financial crisis, David Burt saw trouble brewing in subprime mortgages and started betting on a crisis, winning himself a cameo in The Big Short by Michael Lewis in addition to lots of money. Now Burt runs DeltaTerra Capital, a research firm he founded to warn investors about the next housing crisis. This one will be caused by climate change.