Major insurance companies, including Allstate and State Farm, are pulling out of markets like California and Florida because of the increasingly frequent, destructive, and costly natural disasters that come with climate change. This leaves residents with less coverage, and fewer and more expensive insurance options. In some areas, the inability to get insurance means homebuyers are unable to get a mortgage to purchase a home. The pullbacks by insurance companies stand to ripple through the economy, and are likely to change behavior of individuals, businesses, and policymakers; it will likely alter where people can live, where new construction occurs and whether people can rebuild in the wake of a disaster. And, as insurers and state regulators grapple with doing a better job of pricing this disaster risk, it will create strong market-based incentives for individuals, regulators, and legislators to address climate change head on.