NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
Jan 27, 2025
Caitlin Constantine, NerdWallet's home insurance expert, dives into the rising costs of home insurance driven by climate risks, offering practical tips for finding competitive rates. She highlights the struggles faced by homeowners in high-risk areas, particularly after disasters like wildfires. Savings expert Margaret Burnett clarifies the differences between high-yield savings accounts and money market accounts, discussing the pros and cons of each, while providing insights on maximizing savings. This conversation equips listeners with vital tools to navigate their financial future.
25:29
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Quick takeaways
- Rising home insurance costs are driven by frequent climate disasters, forcing homeowners to navigate higher premiums and limited coverage options.
- When choosing savings accounts, understanding the differences between high-yield savings and money market accounts is crucial for maximizing financial growth.
Deep dives
Rising Home Insurance Costs Due to Climate Change
Home insurance costs are significantly increasing as a direct consequence of climate-related disasters, which are becoming more frequent and severe. Many major insurance providers have ceased writing new home insurance policies or have declined to renew existing ones in high-risk areas. For example, in California, significant insurers like State Farm and Allstate have reduced coverage due to unprecedented wildfire losses exceeding the premiums they collected. With new regulations requiring insurers to write policies for these high-risk areas, homeowners may gain access to coverage but will find themselves facing higher premiums.
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