The economic impacts of extreme weather are widespread, affecting municipalities, consumers, and global credit ratings. Rising insurance premiums, which have outpaced inflation by 7 percentage points since 2017, are redirecting funds from other critical areas such as public health and infrastructure. Smaller nations are particularly at risk, as frequent weather shocks make it increasingly difficult to service debt. Additionally, federal disaster recovery funds in the U.S. are under pressure, potentially jeopardizing the financial stability of 26 states. These challenges highlight the urgent need for robust climate adaptation strategies to mitigate long-term risks.