Homeowners Going Without Insurance

I’ve been writing about the home insurance crisis that has been brewing for years. Well, the first wave of inability to acquire affordable house insurance is here! From the Washington Post, see Home insurance was once a ‘must.’ Now more homeowners are going without it

Here’s a few facts from the article:

• Insurers are pulling out of high risk areas prone to natural disasters. That includes Iowa!

• Some people are being quoted $10,000 a year premiums and more, even $17-25K

• Home insurance is being offered at lower rates, but without natural disaster coverage

• It is estimated that between 7.4-12% of homeowners are going without insurance, experts expect this trend to continue

Insurance companies don’t care about climate change theories. They are reacting to the losses they are experiencing and changing their practices in order to stay in business. You can deny the existence of climate change all you want, but the result may be that “you will be denied” home insurance.

As I’ve written about previously, politicians certainly are starting to have this issue on their radar screen. It will likely take a catastrophic disaster loss where uninsured homeowners get kicked in their financial rears and “outrage” takes over. Still then, federal elected officials who have not had their constituents impacted by disasters will resist action—until they are in the cross-hairs of their voters.

I give it 2-5 years before a national home insurance crisis hits the nightly news and alternative solutions are developed.

And, I don’t give the message of “you took the risks of living where you do” will fly in the face of angry voters.