US Home Insurance 'Bubble' Closer to Popping as Climate Risks Mount: Report

Of those, nearly 6.8 million homes are covered by state-backed "insurer of last resort" policies. [...]state regulations that cap increases in insurance premiums and subsidized insurer-of-last-resort programs have hidden the magnitude of the problem, the report's authors say. While ho...

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Bibliographic Details
Published inInsurance Journal
Main Author Kaufman, Leslie
Format Trade Publication Article
LanguageEnglish
Published San Diego Wells Media Group, Inc 20.09.2023
Subjects
Climate change
Homeowners
Homeowners insurance
Prices
United States > US
California
Florida
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Summary:Of those, nearly 6.8 million homes are covered by state-backed "insurer of last resort" policies. [...]state regulations that cap increases in insurance premiums and subsidized insurer-of-last-resort programs have hidden the magnitude of the problem, the report's authors say. While homeowners in California's wildland urban interface are seeing big increases now, that foreshadows what millions of other property owners elsewhere will soon face, the report says. Since 2021, for example, the Federal Emergency Management Agency, which oversees the National Flood Insurance Program, has been rolling out new rates that are supposed to reflect the real flood price of flood risk that until now has been heavily subsidized. First Street's figure of 39 million homes vulnerable to insurance correction is based on its own property-by property analysis of risks of fire and flood.
ISSN:0020-4714