Make Me Smart
Things are changing fast in the home insurance market
Oct 22, 2024
In this discussion, Amy Bach, Executive Director of United Policyholders, shares her expertise on the evolving home insurance market. She reveals how hurricanes have spiked premiums and coverage cuts, particularly in high-risk areas. New technologies, like drones and AI, are creating challenges for affordability. The economic pressures on homeowners and the implications of the recent hurricanes are explored. Additionally, the conversation touches on the need for transparency and support for consumers as they navigate these turbulent changes.
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Quick takeaways
- The home insurance market is tightening coverage due to climate-related risks, leaving homeowners vulnerable amid rising premiums and exclusions.
- Insurers are leveraging advanced technologies like drones and AI to assess risk, creating disparities in information accessibility for homeowners facing coverage challenges.
Deep dives
Rising Insurance Premiums and Coverage Shortages
Homeowners across the United States are experiencing significant increases in insurance premiums, often reaching 20-30% year-over-year. The recent hurricanes, Helene and Milton, have compounded the crisis, resulting in many claims being closed without payment due to high deductibles or exclusions related to flooding. Many homeowners either lack flood insurance or struggle to afford multiple policies, further contributing to the issue of being uninsured or underinsured. Insurers have responded to the escalating risks of climate-related disasters by tightening coverage limits, leaving many homeowners vulnerable amid rising costs.
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