Comment on America's home insurance problem is set to intensify

America's home insurance problem is set to intensify

Firefighters at a house in Camarillo, California that was heavily damaged by the Mountain fire in November 2024.Myung J. Chun/Getty ImagesPrivate home insurers are dropping a growing number of customers in most states, a Senate report found.That leaves homeowners at risk, turning to more expensive last-resort options or going uninsured.While Florida has managed to reverse the trend somewhat, the risk to homeowners is set to intensify.As Americans flock to places in the US vulnerable to natural disasters, private home insurance companies are running the other way.The problem has left a rising number of homeowners with just one option to cover property damage: insurers of last resort.The scale of homeowners losing their plans became clearer on Wednesday after a Senate Budget Committee investigation found that private insurers' nonrenewals spiked threefold in more than 200 counties between 2018 and 2023."What our new data reveal is that the failure to deal with climate change is also affecting whether families can even get homeowners insurance, which threatens their ability to get a mortgage, which spells trouble for property values in climate-exposed communities across the country," Senate Budget Chairman Sheldon Whitehouse said in releasing the report.A recent study by Harvard University's Joint Center for Housing Studies found that between 2018 and 2023, the number of properties enrolled in California and Florida's insurers of last resort more than doubled.

 

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