Extreme weather has cost the US $2.6T, and the number keeps rising

Storm watch… The US last year endured 28 weather and climate disasters that each cost at least $1B — the highest annual total on record. Zooming out over the past 40 years, weather and climate disasters have cost the country more than $2.6T. (2022’s Hurricane Ian alone caused $110B in damages in Florida.) These events are becoming more frequent as the climate crisis stirs up extreme weather: 2023 was the hottest on record, and the fourth in a row that the US experienced more than 18 billion-dollar disasters.

Financial impacts… A report from last fall said that the global cost of the climate crisis is $391M/day — or $16M/hour. As heat waves, floods, and hurricanes cause significant structural damage, insurance premiums have skyrocketed in areas especially hard hit. Insurers like State Farm have ditched home coverage in disaster-prone states like California. In Florida, home-insurance premiums could reach $12K this year, 4x the national average. It’s not just rebuilding costs: violent changes in weather have badly harmed key crops and spiked food prices. One recent example: cocoa. Heavy rainfalls followed by intense heat waves in West Africa (which produces 70% of cocoa) have resulted in disastrous harvests, sending cocoa costs up 150% to almost $11K/ton — pricier than copper.

The forecast… America’s hurricane season this year could see 25 or more named storms develop, far beyond the typical 14. As oceans get warmer (fueling hurricanes), experts say more intense and costly storm seasons could become the norm. By mid-century, the climate crisis is expected to cost the world economy $38T/year.