Key Takeaways:
- Home insurers are losing money due to extreme weather events.
- Homeowners insurance prices are climbing in all states.
- If you lose your homeowners insurance and can’t find a replacement, you may want to look into a Fair Access to Insurance Requirements plan.
Everybody knows how important homeowners insurance is – that’s why it can be rattling to be told by your insurer that you’ve just lost it.
Due to extreme weather events and natural disasters, insurers are losing money, even in states with low hurricane and wildfire risk.
As of May 8, there have been seven confirmed weather/climate disaster events this year in the U.S., with losses exceeding $1 billion each. These included five severe storm events and two winter storm events, according to the federal National Centers for Environmental Information. There were 28 separate billion-dollar weather and climate disaster events identified during 2023 – the highest annual disaster count in the 44-year record.
Some home insurance companies are going out of business, according to the Consumer Financial Protection Bureau. In states such as Florida and California, several insurers have stopped selling policies or are scaling back operations. Some insurance carriers are being watched due to potential insolvency. Other companies have increased the price of insurance to the point where homeowners can’t afford it.
Homeowners are facing new decisions about insurance, often with limited time to consider…
