7.4% of all homeowners choose not to purchase insurance to protect their home. (iStock)
Homeowners insurance is required in many states, especially if you have a mortgage, but not all homeowners carry the insurance they need.More than 6 million homeowners in the United States do not have homeowners insurance, according to the Consumer Federation of America (CFA). report.
According to the report, an estimated 7.4% of homeowners nationwide are uninsured, leaving $1.6 trillion in assets unprotected. Homeowners are more likely to go uninsured due to the high cost of homeowners insurance.
“Many consumers cannot afford higher premiums and are forced to live without homeowners insurance,” Sharon Cornelissen, CFA’s director of housing, said in the report.
Homeowners with lower incomes are more likely to avoid purchasing insurance. People with incomes less than $50,000 are twice as likely to receive inadequate coverage or no coverage at all.
Additionally, certain demographic groups are more likely to forego insurance than others. 22% of Native American homeowners are uninsured, 14% of Hispanic homeowners are uninsured, and 11% of Black homeowners are uninsured. not. Homeowners living in the Houston and Miami areas are more likely to be uninsured, according to the report.
“that [not having insurance] putting them at risk of losing everything. “Once a storm or wildfire hits, people can go into debt to repair their homes, live in unsafe and inadequate housing, or even become homeless,” Cornelissen said.
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2023 will be the hottest year on record, driving up utility bills and homeowners insurance prices
Law could reduce homeowners insurance costs
As the homeowners insurance crisis grips the nation, some states are trying to pass laws that would lower premiums.
In Florida, and specifically in Broward County, commissioners are calling for: pass a bill That would reduce rates for Florida residents by up to 25%. Florida’s frequency of natural disasters and high rates of fraud make it some of the most expensive states in the nation.
The bill, originally introduced by Representative Jared Moskowitz, is titled the “Natural Catastrophe Reinsurance Plan.” Because Florida is highly affected by natural disasters, this program could potentially save homeowners hundreds of dollars on their monthly insurance premiums. If passed, this bill would help Florida and other states that choose to reduce the need for insurance companies to purchase reinsurance from other insurance companies.
In other words, companies buy insurance from outside companies to protect themselves from risks and pass those higher premiums on to homeowners. This bill would limit this need and save money for insurance companies as well as insurance companies.
If you need a new insurance company, Credible can help you compare rates from multiple insurance companies. This could potentially save you hundreds of dollars each year on your homeowners insurance.
North Carolina refuses to raise premiums; premiums continue to rise in other states
Car insurance premiums are also rising
Drivers in most states are also seeing their monthly insurance premiums reach record highs. The auto index’s share of inflation rose 0.9% in February, according to the Bureau of Labor Statistics. report.
Last year, the index increased by 20.6%, showing the sharp rise in auto insurance costs across the country. Rising prices for used cars and trucks also fueled the index’s rise. The company’s index rose 0.5% in the January-February period.
31% of drivers experienced an increase in their car insurance last year. Found JD Power. Premium rates increased by an average of 15.5%. This is mainly because insurance companies have suffered huge losses.
“Overall customer satisfaction with auto insurers has plummeted this year as insurers and drivers face economic realities,” said Mark Garrett, director of insurance intelligence at J.D. Power. .
Drivers are increasingly frustrated with the insurance industry as companies leave the state altogether.
“Insurers are torn between balancing profitability and customer experience, but they need to proactively offer customers alternatives to UBI and clearly articulate and explain the required premium rates. There are ways to mitigate the negative impact of rising costs by increasing trust and consistently delivering on your brand promise,” Garrett said.
Car insurance rates vary based on a variety of factors, from your credit score to your driving habits. Use Credible’s free tools to review and lower your car insurance premiums today.
Auto insurance premiums rise as auto theft and false insurance claims increase
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