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hatrack

(61,190 posts)
Tue Dec 17, 2024, 07:23 AM Dec 17

2022 + 2023 Insured Property Losses In The US Totaled $47 Billion; Companies Cutting Coverage Even As Premiums Spike

EDIT

There’s no easy fix. A combination of broad economic trends — labor shortages, inflation, higher reinsurance and rebuilding costs — and more costly and uncertain extreme weather events are driving up premiums. Homeowners face an unsettling reality: Insurers are passing these costs to consumers with higher rates and more restricted coverage. In some states, insurers have stopped issuing new policies altogether. Ordinary Americans must now make hard calculations: Can they afford to stay, or is there a way to navigate this new insurance market?

Historically, insurance was a win-win for everyone. Homeowners paid a small premium to receive a payout after a natural disaster or other loss. Insurers turned a profit by spreading the risk among homeowners across the country. But costs from extreme weather events have been rising, in part because Americans have continued to move into areas that are more vulnerable to severe storms.

Underwriting losses among U.S. property insurers totaled $47 billion in 2022 and 2023 alone, according to AM Best, a global credit rating agency. Property insurance premiums have risen by more than 30 percent since 2020, the last full year the industry posted an underwriting profit. And insurers are still fleeing markets — seven out of California’s top 12 carriers have curtailed coverage over the last two years — or going bankrupt. Public plans, once a last resort, are the largest (and sometimes only) affordable option in “insurance deserts,” where private insurers no longer offer new standard policies.

About 10 percent of U.S. homeowners are now forgoing insurance, double the recent rate. Or in some cases, they’re selling their homes citing insurance premiums that rival mortgage payments.

EDIT

https://www.washingtonpost.com/climate-environment/interactive/2024/home-insurance-climate-change-premiums-strategies/

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2022 + 2023 Insured Property Losses In The US Totaled $47 Billion; Companies Cutting Coverage Even As Premiums Spike (Original Post) hatrack Dec 17 OP
Under GQP control.... Lovie777 Dec 17 #1
Did homeowners and buyers think... Think. Again. Dec 17 #2
Get ready for some BIG spikes in 'Homeless' population 70sEraVet Dec 17 #3

70sEraVet

(4,233 posts)
3. Get ready for some BIG spikes in 'Homeless' population
Tue Dec 17, 2024, 11:26 AM
Dec 17
About 10 percent of U.S. homeowners are now forgoing insurance

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