Todd and Clinton discuss the impact of recent fires on insurance costs, noting that insurance premiums have risen due to increased risk factors. They also address the high costs of new home construction, citing labor and material expenses, and the challenges of new home construction, including overruns and scope creep. Clinton explains that most new construction mortgages are turnkey, with clauses for inflation and change orders. They also touch on the risks and complexities of draw financing, where borrowers act as lenders to contractors.