US home insurance ‘bubble’ close to popping

Natural disaster: A resident sits on the steps of his home damaged by a wildfire in Louisiana. A non-profit organisation says as the number of disasters and damages keep rising, the US insurance market will undergo a major adjustment and rates will surge. — AP

NEW YORK: Home insurance costs that have soared in much of the United States may get even higher.

Tens of millions of properties around the country are insured at prices that haven’t caught up with the danger of hurricanes, wildfires and floods, according to a new report from the First Street Foundation, a non-profit organisation that works to define and communicate risks posed by climate change.