The home insurance crisis in many states could be “black swan” type event that brings down huge parts of the economy.
A mass pullback by companies has left many homeowners struggling to get private coverage.
Not inconceivable that soon all-cash buyers could be the only ones able to buy homes in Florida, California, Texas and other high insurance cost states bc they aren’t required to have it if no mortgage.
Ten states where regulators can reject requests upfront have all greenlighted double-digit increases since the start of last year, with half those increases close to or above the 20% national average, the S&P data show. California, which for decades kept a tight lid on home-insurance rates, has approved an average 21% rate increase over the period, according to the S&P data.
Home insurers racked up a $16 billion underwriting loss last year, the biggest amount since at least 2000, according to AM Best. It expects losses to continue.
Florida addressed one of the biggest complaints from insurers by making it harder for consumers to sue the companies. The market is already showing signs of improvement, industry groups say.
The state remains the most expensive in the nation for home insurance. The average premium there last year was $3,340—roughly double the national average, according to the Insurance Information Institute.
@PeskySwanTranshumanist9mos9MO
Insurance costs are now hitting Maryland becoming a hurdle for some homebuyers. Every $100/month in is equivalent to borrowing $16k for a mortgage. For many, the combined increase in Auto/Home is $300+ reducing buying power by $50k.
Oh, and tax assessments are also hitting…
@OptimisticPuddingGreen9mos9MO
Is it a bad thing if only cash buyers buy up all the housing?
Yes. Yes, I think so.
@StressedElectoralSocialist9mos9MO
Pricing people out of those states to what end? To turn FL, CA, into "members only" states akin to private country clubs? Also, same insurance companies crying "We need to raise rates!" - how are those CEO's doing? Follow the money.
@YouthfulLapwingDemocrat9mos9MO
Car insurance costs rising too:
Car insurance is a disaster right now.
The average premium has already risen *15%* in 2024 to an annual price of $2,329.
The rest of the country is tired of paying for the constant rebuilding of millionaire's costal get-a-ways. Make them form their own insurance market. Stop using taxes to re-sand their beaches.
@ISIDEWITH9mos9MO
@ISIDEWITH9mos9MO
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