A recent report by the Consumer Federation of America has revealed that Utah homeowners are facing the largest increase in annual insurance premiums in the nation. Between 2021 and 2024, typical Utah homeowners saw their insurance premiums rise by nearly $700.
Sharon Cornelissen, director of housing for the federation, highlighted that the surge in premiums, coupled with rising housing costs, has created significant challenges for many Utah residents. The report served as a wake-up call for both consumers and policymakers across the country, emphasizing that the insurance crisis is increasingly intertwined with the housing crisis.
“Our insurance crisis is increasingly also a housing crisis. These are not separate,” Cornelissen stated. “We know that first-time homebuyers already struggle to afford a mortgage, and with spiking insurance costs, many may feel like they can never own a home.” The report noted a correlation between extreme weather events, higher premiums, and rising mortgage distress.
To address this issue, the report recommended several measures. These included requiring insurance companies to annually release data on pricing, coverage, and claims. It also suggested that federal and state governments expand grant-based and loan-risk mitigation programs. Additionally, the creation of a “reinsurance program” was proposed to help stabilize the market.
Experts advised homeowners to shop around for the best insurance rates and to maintain their properties, particularly by implementing fire-reduction measures. Doug Heller, director of insurance for the federation, pointed out that climate change is exacerbating the problem. He criticized insurance companies for abandoning their customers during times of need, while justifying their actions by citing the need to manage risk.
“The crisis is also a reflection of some brazen bullying we have seen from insurance companies around the country,” Heller said. “They put customers that have paid premiums for decades on the chopping block and turn their backs on communities that have relied on them for generations.” Many Utah residents have been forced to make difficult decisions, either cutting back on other expenses to afford the increasing premiums or facing the consequences of being dropped by their insurance companies, especially as climate change continues to impact communities nationwide.
