Vinod Khosla

The total value of all mortgages and homeowner mortgages in Florida is $454 billion. And those people typically have a debt to equity ratio probably on the 50 to 80% range. So if the value of your home dips by 25%, because everyone starts selling their homes, leaving Florida, or they can't get insurance,

The total value of all mortgages and homeowner mortgages in Florida is $454 billion. And those people typically have a debt to equity ratio probably on the 50 to 80% range. So if the value of your home dips by 25%, because everyone starts selling their homes, leaving Florida, or they can't get insurance,

then the people that live in Florida, most of them have their net worth tied up in their home, are going to see their personal net worth wiped out or cut in half. So it's not just an economic problem. It's a social problem that now there are so many people that have put their entire net worth into their home.

then the people that live in Florida, most of them have their net worth tied up in their home, are going to see their personal net worth wiped out or cut in half. So it's not just an economic problem. It's a social problem that now there are so many people that have put their entire net worth into their home.

The value of their home is written to a point that it no longer makes sense given the frequency at which homes are going to get destroyed.

The value of their home is written to a point that it no longer makes sense given the frequency at which homes are going to get destroyed.

No. It's totally viable. It's just the question is what are you willing to – At what price?

No. It's totally viable. It's just the question is what are you willing to – At what price?

Will you pay 5% of your home value for insurance every year? Will you pay 2%, 3%?

Will you pay 5% of your home value for insurance every year? Will you pay 2%, 3%?

It becomes very, very untenable. Well, it used to be 1 in 500 years. Now it's probably 1 in 15, right?

It becomes very, very untenable. Well, it used to be 1 in 500 years. Now it's probably 1 in 15, right?

Well, I mean, you saw that the range at which these events can happen is all over the place. And the challenge is the events are getting more significant because of this warm ocean weather that we see, this warm ocean temperature.

Well, I mean, you saw that the range at which these events can happen is all over the place. And the challenge is the events are getting more significant because of this warm ocean weather that we see, this warm ocean temperature.

An investment in climate resilience, that's right.

An investment in climate resilience, that's right.

That's right. And that's what happened in California. And by the way, State Farm left a lot of California.

That's right. And that's what happened in California. And by the way, State Farm left a lot of California.

Going in one anyways, we ended up getting the for most homeowners, when the cost of insurance gets to a certain threshold, you don't have budget for it, you can't afford it. And so that's a lot of why the insurers leave, they'll underwrite anything at any price, but they just know that most consumers can't afford it. Here's some other interesting statistics, related but unrelated.

Going in one anyways, we ended up getting the for most homeowners, when the cost of insurance gets to a certain threshold, you don't have budget for it, you can't afford it. And so that's a lot of why the insurers leave, they'll underwrite anything at any price, but they just know that most consumers can't afford it. Here's some other interesting statistics, related but unrelated.