Money For the Rest of Us

How to Navigate the Crippling Home Insurance Crisis

Jun 5, 2024

Learn why home insurance premiums are skyrocketing and what homeowners can do if they face premium increases or coverage drops. Topics include the reinsurance market, self-insurance by home insurers, and strategies for navigating the home insurance crisis.

27:00

AI Summary

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Home insurance premiums are skyrocketing due to reinsurers passing on increased costs to insurers.

Homeowners must consider self-insurance and alternative providers to navigate the surge in home insurance costs.

Deep dives

Home Insurance Crisis Background and Impact on Mortgage Approval

The podcast episode discusses the challenges faced by the host, David Stein, while attempting to secure a mortgage due to new requirements imposed by agencies like Fannie Mae and Freddie Mac on self-employed individuals following the pandemic. These agencies ensure mortgages packaged into bonds and guarantee them. The changes in home insurance premiums have significantly impacted homeowners, with exorbitant rate increases, leading to financial burdens and difficulties in obtaining affordable coverage.

Intro

10min

Navigating the Escalating Crisis in Home Insurance

8min

Navigating the Crippling Home Insurance Crisis

3min

Navigating Home Insurance Challenges and Risks

7min

Exploring the Home Insurance Crisis and the Importance of Insurance Coverage

3min

Why are homeowners seeing home insurance premiums increases of up to 70%, as David has? What can you do if your insurer drops you, you get a huge premium increase, or you can no longer afford coverage?

Topics covered include:

What are the primary drivers of home insurance price increases
Why these increases don't show up in the U.S. consumer price index
How the reinsurance market works and why reinsurers are passing on 50% premium increases to property and casualty insurers.
What percentage of home insurers self-insure
What else can homeowners do

Sponsors

Delete Me – Use code David20 to get 20% off

NetSuite

Insiders Guide Email Newsletter

Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter

Our Premium Products

Asset Camp

Money for the Rest of Us Plus

Show Notes

Home Insurance Is Clobbering Consumers. Yet It’s Barely Counted in Inflation. by Jeanna Smialek—The New York Times

NIPA Handbook: Concepts and Methods of the U.S. National Income and Product Accounts: Chapter 5: Personal Consumption Expenditures—Bureau of Economic Analysis

The crippling home insurance crisis hitting America by Rana Forhoohar—The Financial Times