Extreme weather associated with climate change can lead to financial collapse to many American homeowners and leads to billions of losses to lenders, and a new investigation is determined.
The first street exploring the impact of climate change is announced on Monday’s analysis projects, which announced that the closing of floods, wind and other weather -related incidents market over the next 10 years may increase by 380%. By 2035 By 2035 By 2035 Can account for up to 30% of the market closure compared to approximately 7% this year.
Low or medium -income households are particularly vulnerable due to the harsh weather for their home, the First Street said. Most of the wealth of Americans is linked to the value of their qualities.
The cascade of market restrictions, which is determined by the cost of repair and the insurance premiums caused by the extreme weather, will not only damage homeowners. First Street Estimates Lenders will lose $ 1.2 billion a year in 2025. – and up to $ 5.4 billion in 10 years – because they are forced to master the costs of default.
Such losses reflect the “hidden risks” of climate change, which lenders often disregard their insurance practice, CBS Moneywatch said Jeremy Porter, a climate -based leader First Street. Lenders consider the factors, including the debtor’s income, debts and credit score when issuing a mortgage, but not the potential effects of extreme weather on property or how it could increase contributions.
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