US Home Insurance Becoming Unaffordable, Study Finds
A recent report from the Insurance Research Council has revealed that consumer expenditure on home insurance in the United States has been growing at a rate that consistently outpaces income growth in recent years. This trend suggests that home insurance is becoming increasingly unaffordable for many homeowners.
The report’s findings have significant implications for the insurance industry, particularly in regions prone to natural disasters. As climate-related events continue to impact housing markets, insurance costs are rising. The situation is further complicated by other economic factors, including inflation and supply chain disruptions, which affect the cost of repairs and rebuilding.
In contrast, the motor insurance market is reportedly turning into a buyer’s market, suggesting a divergence in trends between home and motor insurance affordability.
The issue of unaffordable home insurance is likely to have far-reaching consequences, potentially affecting not only homeowners but also the broader housing market and economy. As the insurance industry responds to these challenges, it will be important to monitor how these trends evolve and what measures are implemented to address the growing unaffordability of home insurance.
