Weather Risk

Complicating the matter is the fact that climate-fueled extreme weather can be hard to predict.

As Florida's property-insurance market has crumbled and home values have soared, many homeowners have been dropped by private insurers and cannot qualify for Citizens coverage because of the $700,000 cap.

Drought conditions followed by massive downpours are causing damaging and deadly flooding across the globe.

"If there's a direct-hit Category 5 storm that hits Miami, you're going to see 20 insurance companies go bankrupt and are not going to be able to pay claims. It's become a big problem," said South Florida insurance broker Joseph Gendelman.

The drought comes alongside a multi-month heatwave – the two elements combining to create the hottest, driest summer in the 61 years the government has recorded such data.

Meteorologists are describing the flooding as a 'once-in-200-years' event.