Slake Counts has made a frightening decision. After the price of his homeowners insurance skyrocketed, the Tampa, Florida, resident has chosen not to renew his policy. Now, he’s pondering his options, which include selling his home and leaving the state. Must Read “There may be other options for me at this time in my life that don’t necessitate me continuing to live in Florida or Tampa,” Counts told Tampa Bay 28 in a story published Jan. 19 (1). “I’m not the only one in this boat.” He may be right. Ac ...

Photographer: Tristan Wheelock/Bloomberg Three US senators opened an inquiry into insurance ratings firm Demotech and whether its assessments may be exposing Fannie Mae and Freddie Mac — and ultimately taxpayers — to growing risks tied to climate-driven insurer failures. In a letter sent Tuesday to Fannie Mae acting Chief Executive Officer Peter Akwaboah and Freddie Mac CEO Kenny Smith, the three Democratic lawmakers questioned why the government-backed mortgage giants continue to accept Demotech ratings ...

Core Insights - Rising insurance costs are significantly impacting homeowners, particularly in disaster-prone states like Florida, Texas, and California, with premiums increasing at a rate that outpaces general inflation [2][3][5] Group 1: Insurance Premium Trends - Homeowners in Miami pay an average of $502 per month for property insurance, a rise from $306 at the end of 2019, while New Orleans averages $472 per month [1] - Nationally, insurance premiums have increased by 4.9% in the first half of the year and 11.3% year-over-year, with California experiencing the fastest growth due to new regulations and recent wildfires [3] - The average single-family homeowner now pays nearly $2,370 annually for property insurance, marking a 70% increase over the last 5.5 years [7] Group 2: Impact on Homebuyers - Rising insurance costs are becoming a critical factor in homebuying decisions, with 75% of recent and prospective homebuyers expressing concern about future affordability [6] - Younger buyers, particularly Gen Z and millennials, are more likely to adjust their homebuying strategies due to insurance challenges, with 31% of Gen Z and 26% of millennials reporting changes [15] - Homebuyers are increasingly feeling the financial strain, with some first-time buyers facing challenges in qualifying for loans due to rising insurance costs impacting their debt-to-income ratios [9][10] Group 3: Regional Variations - In areas far from coastlines, such as Minneapolis and Des Moines, insurance premiums have also risen, averaging $272 and $194 per month respectively, reflecting broader trends in the market [8] - The Riverside metro area in Southern California has seen insurance costs rise more than 8% in the first half of the year, averaging $172 per month [17] Group 4: Homeowner Strategies - Homeowners are exploring various strategies to manage rising costs, including shopping for new insurers, bundling policies, and accepting higher deductibles [19] - A significant portion of homeowners without a mortgage are opting to forego insurance altogether, with 1 in 5 lacking meaningful coverage in 2023 [20]