New Orleans could be surrounded by sea water in a matter of decades according to new research. The study says the US city has reached a “point of no return”, and that rising temperatures and sea levels mean the process of relocating residents should start immediately.

For the city’s 360,000 residents, the financial effects of climate change will probably arrive before the water itself. Long before streets become permanently flooded, household finances can begin to deteriorate.

Properties at extreme risk of flooding can lose value, becoming harder to insure and then harder to sell.

And while New Orleans is an extreme example, situated as it is below sea level on the low-lying Louisiana coast, the financial risks of climate change apply elsewhere.

In many countries, the home is often the largest family asset, offering security in retirement or for younger generations. But, long before any place becomes physically uninhabitable, insurance premiums, mortgage costs, property valuations and market confidence can all take a hit if an asset is........

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