All articles tagged with #home insurance
Originally Published 2 months ago — by NPR
Home insurance in the U.S. is becoming less affordable and less available due to rising disaster costs, climate change, and insurers pulling back from high-risk areas, impacting communities nationwide and prompting efforts to improve resilience and risk assessment.
Originally Published 5 months ago — by The Lever
The article discusses how the rise in profits for home insurance companies, driven by performance-based executive pay, is leading to higher premiums for homeowners, and highlights concerns about the potential for 401(k) funds to be used for private equity investments, raising questions about the impact on individual retirement savings.
Originally Published 6 months ago — by Yahoo
Experts warn that climate change-induced extreme weather events are causing a home insurance crisis, with rising premiums and insurers withdrawing from high-risk areas, potentially leading to widespread uninsurability, economic decline, and community destabilization if unaddressed.
Originally Published 1 year ago — by New York Post
Florida's state-backed Citizens Property Insurance Corporation plans to increase home insurance rates by 14% next year, affecting over a million residents. This decision comes despite some private insurers cutting or maintaining their rates. The hike, pending regulatory approval, is driven by inflation and frequent severe weather, and aims to move towards actuarially sound rates while remaining lower than most private insurers. The increase will impact primary and secondary homeowners differently, with secondary homes seeing a 50% rise.
Originally Published 1 year ago — by The New York Times
Home insurance premiums are skyrocketing, particularly in coastal areas like Florida, with rates up over 40% in the past five years. This surge is forcing many homeowners to sell their properties or drop insurance altogether, yet these rising costs are barely reflected in official inflation data, contributing to a disconnect between economic indicators and consumer sentiment.
Originally Published 1 year ago — by Fox Business
Home insurance rates in the U.S. have surged nearly 40% since 2019, driven by factors such as weather disasters, rising home prices, and increased costs of building materials. States like Arizona, Nebraska, and Illinois have seen the highest spikes, with some insurers leaving high-risk areas like California and Florida. This rise in insurance costs, coupled with higher mortgage rates, is making homeownership increasingly difficult for many Americans.
Originally Published 1 year ago — by Yahoo Finance
Rising home insurance costs and policy cancellations, driven by climate change and increasing natural disasters, are leaving more homeowners without coverage. This trend is particularly affecting those in disaster-prone areas like California, where insurers like State Farm are pulling out, leaving residents with few and expensive alternatives. The issue is exacerbated by regulatory constraints and the rising cost of reinsurance, making it difficult for homeowners to find affordable policies.
Originally Published 1 year ago — by Newser
Home insurance companies are increasingly using aerial footage from drones, planes, and high-altitude balloons to assess properties, with the industry-funded Geospatial Insurance Consortium having aerial footage of 99% of US properties. Consumers are reporting being dropped by insurers based on this aerial imagery, with examples of homeowners being denied the opportunity to mitigate alleged hazards in their yards and outdated photos being used as reasons for nonrenewal. Insurers argue that customers agree to allow them to inspect their properties, including from the sky, but consumer groups are raising concerns about the lack of transparency and the potential for unfair decisions.
Originally Published 1 year ago — by Los Angeles Times
State Farm is not renewing home insurance policies for thousands of homeowners in upscale neighborhoods in Los Angeles County, including Bel-Air and Pacific Palisades, due to financial concerns and high wildfire risk. This move adds to the existing home insurance crisis in California, prompting some residents to turn to the FAIR Plan as a last resort. State officials are proposing new rules to address the crisis, including allowing insurers to raise rates to cover reinsurance costs and projected losses from catastrophic fires while requiring them to provide coverage for more homes in high-risk areas.
Originally Published 1 year ago — by WEAR
Florida has approved eight new insurance companies to enter the state's market, potentially stabilizing the fragile insurance market and providing homeowners with more choices. This move comes as homeowners struggle with high premiums, with some paying close to $5,000 a year for insurance. The companies' entry is seen as a positive sign for the market's health, and it follows efforts to address property insurance issues in the state. With the 2024 hurricane season forecasted to be very active, homeowners are advised to prepare and explore options to mitigate high insurance rates.
Originally Published 1 year ago — by Fox Business
Home insurance costs in the U.S. have surged, particularly in states prone to climate-related disasters, with Florida leading the pack at an average of $9,213 annually. Insurers are increasingly withdrawing coverage from high-risk areas, impacting both home and car insurance. To lower premiums, homeowners can disaster-proof their homes by taking preventive measures and consider relocating to lower-risk states. Comparing quotes from multiple insurance providers is recommended to find the best coverage and rates.
Originally Published 1 year ago — by Daily Mail
US home insurance rates are projected to reach a record high of $2,522 by the end of 2024, with some states facing premiums as high as $12,000 due to escalating natural disasters, insurers pulling out of certain areas, and higher fees for home repairs. Florida and Louisiana are among the worst affected, with premiums expected to rise by 7% and 23% respectively. Climate change is increasing the severity and frequency of extreme weather events, leading to a surge in insurance costs and making some high-risk areas potentially uninsurable.
Originally Published 1 year ago — by News-Press
Home insurance rates in Florida are already four times the national average and are expected to increase further, with Insurify projecting a 7% rise in 2024. The state faces an "explosive" hurricane season, potentially breaking the record for named storms. Severe weather-prone states like Florida, Louisiana, and Texas are vulnerable to rate hikes, with Florida homeowners paying the highest average rate of $10,996. The state's insurance crisis is exacerbated by reinsurance challenges, insurance fraud, and legal system abuse. Efforts by the Florida Legislature and Governor DeSantis aim to address rising costs, but homeowners are advised to prepare for potential damage and research ways to protect their homes.
Originally Published 1 year ago — by Financial Times
Home insurance costs are on the rise, causing financial strain for homeowners. The insurance industry is experiencing increased expenses due to climate change-related events and rising construction costs, leading to higher premiums for policyholders. This trend is expected to continue, prompting homeowners to carefully consider their insurance options and budget for potential increases in the future.
Originally Published 1 year ago — by Yahoo Finance
The home insurance market in places like New Orleans and California is crumbling due to climate change, leading to skyrocketing premiums and limited coverage options for homeowners. Insurers are raising premiums or pulling out altogether due to increased risks from extreme weather events, leaving many homeowners struggling to find affordable coverage. Some are forced to turn to state-supported "insurers of last resort" at significantly higher costs, while others are considering going without insurance due to the high additional costs and challenges of obtaining coverage.