As the Storms Rage On, Denial Becomes Costlier: A Floridian's Perspective
FRANK SHINES
Digital Transformation Executive ◆ Head of AI ◆ Co-Led 6x Rev Growth, from $5M to $30M ◆ Built IBM Consulting Group to $110M+ ◆ Doc. Film & Music Producer ◆ Lean Six Sigma Master Black Belt
I am sitting in Tampa, FL, as another hurricane approaches—this time Helene, a Category 4 behemoth. We've been hit nearly directly three times in the past 15 years or so. In a world of fake news and climate change deniers, we need only "follow the money."
Every year, extreme weather events become more frequent and severe, and the financial burden is hitting closer to home. The real money flowing out of our wallets is creating cognitive dissonance among climate change deniers. It's hard to ignore the escalating costs when they're directly impacting our bank accounts.
The Escalating Insurance Crisis
Florida now has the highest home insurance rates in the country, with the average annual cost nearing $11,000. This isn't just a statistic; it's a monthly strain on families trying to protect their homes. Our state's vulnerability to hurricanes and other severe weather events is driving these costs through the roof.
Insurance rates are expected to increase further due to predictions of severe hurricane seasons. As the cost of insuring against storms, fires, and floods rises, some insurers are choosing to stop offering coverage in certain areas or states altogether. This leaves homeowners in a precarious position, often facing higher premiums when they switch providers. The percentage of homeowners without coverage is increasing, which can slow down recovery if a disaster hits.
Municipal Bonds and Local Budgets
Extreme weather is also pressuring local budgets, sticking Americans with the bill and putting the $4 trillion market for state and local bonds at the center of the climate-change fight. Cities and counties are selling bonds to cover costs from storms and droughts. For example:
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As Georgetown, Texas, Mayor Josh Schroeder said, “We’ll be paying off the bond for the four days of electricity for years to come.”
The Cognitive Dissonance
Climate change denial becomes increasingly untenable when the financial repercussions are so immediate and personal. It's one thing to debate abstract theories; it's another to face skyrocketing insurance premiums, increased taxes, and higher costs of living due to extreme weather events.
Research firms and investors are paying attention. Bondholders are concerned that volatile, damaging weather patterns will punish critical infrastructure and imperil the nation’s roads, bridges, and energy grids. The market for municipal bonds has become a testing ground for the increasing demands that heat, water, and wind are putting on local communities.
As I brace for Hurricane Helene, I can't help but reflect on the real costs we're all bearing. The evidence of climate change isn't just in scientific reports; it's in our wallets. The financial strain is a wake-up call that we can't afford to ignore. It's time to acknowledge the reality of climate change and take collective action before the costs become too great to bear.
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