In this article for The Hill, partner Justin Cooper forecasts a potential crisis in the homeowners insurance market as a result of climate change and the mounting threat of natural disasters around the nation and offers solutions for policymakers.
Justin, head of Orrick’s global finance sector and chair of our public finance housing finance group, warns that “climate change is creating a perfect storm of financial disaster, threatening 70 million U.S. homeowners and our entire financial system, witnessed by many but stopped by no one.”
The remedy, Justin writes, is uniform federal regulation rather than a patchwork of state regulation.
“Our best hope in the United States may be the federal government: FHA, Fannie Mae and Freddie Mac set the standards for the home mortgage industry,” the article concludes. “It’s time for them to start taking a hard look at climate change and requiring insurance that truly reflects the risks posed by our changing climate.”