The article is talking about the relationship between insurance and housing prices. When insurance premiums go up, housing prices fall. When insurance is more d

The article is talking about the relationship between insurance and housing prices. When insurance premiums go up, housing prices fall. When insurance is more difficult to get or not available at all, housing prices fall a lot. > Assume a typical California home is worth $1 million and insuring it costs $5,000 annually. If the equivalent rent is $70,000, doubling the premium would reduce the house’s value by 7% > State Farm cancelled most of its policies in Pacific Palisades last year; the median sale price there fell 16% So, it follows that since the risk of natural disasters is increasing across the US, that insurance premiums will rise and thus home prices are inflated because they don’t account for that yet.