The Hidden Costs of Moving Away from Climate-Risk Areas

Ever thought about ditching your flood-prone hometown for somewhere safer? Join the club. Millions of Americans are having that same conversation as climate threats keep getting worse.

Research from First Street Foundation projects that more than 55 million Americans will relocate by 2055 to escape climate threats — with as many as 5.2 million Americans projected to move in a single year as the trend accelerates. Sounds like a smart plan until folks discover the hidden costs that nobody talks about.

Insurance Gets Complicated Fast

Homeowners fleeing risky areas often find their insurance policies become useless in new locations. Trading flood zones for wildfire country? That's swapping one set of risks for another, each needing different coverage.

Insurance companies are getting picky about coverage areas, and premiums are climbing in many regions. Some people end up paying more for insurance in their "safer" spot than they ever did in the risky place. Companies now factor climate risk into credit scores too, meaning certain locations could mess with mortgage rates.