Home insurance quotes are sky-high. More Americans are opting out
What caused the spike in uninsured American homeowners since 2019?
The spike in uninsured American homeowners since 2019 is primarily due to a dramatic rise in the cost of coverage, with premiums increasing by more than 11% last year1. Inflation, supply chain disruptions, and climate change-driven extreme weather events have contributed to higher insurance costs, making it unaffordable for many homeowners.
How have rising insurance premiums affected low-income and minority homeowners?
Rising insurance premiums have disproportionately affected low-income and minority homeowners, who are more likely to go uninsured or underinsured. Factors such as higher unemployment rates, population density, and living in high-risk areas contribute to these groups facing greater difficulties in obtaining and affording adequate insurance coverage3.
What factors are driving the increase in homeowners insurance premiums?
Several factors are driving the increase in homeowners insurance premiums, including the rise in natural disasters such as hurricanes, floods, and wildfires, which have led to a spike in claims. Additionally, higher construction costs due to inflation and supply chain issues are contributing to the increase in premiums. Furthermore, insurance companies are facing financial challenges, which have prompted them to raise rates to keep up with inflation and maintain profitability.