Why it's becoming harder and more expensive to get homeowners insurance | CNN Business

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Homeowners insurance is becoming more expensive and, in many places, more difficult to find. There’s no sign that the situation is going to get better any time soon.

The culprits: climate change, rising costs to rebuild or make repairs and a sharp increase in the premiums from reinsurance companies that are used by insurers to limit their risks. Major insurance companies have already virtually pulled out of the Florida market, leaving homeowners paying premiums nearly four times higher than those paid elsewhere in the country. Hurricane risk is part of Florida’s problem – Hurricane Ian last year was the most expensive storm ever to hit the state.

” The spread of uninsurable places Uninsurable places are growing across all 50 states, experts said, but that’s especially true in California, Florida and Louisiana, which have larger and more frequent disasters like hurricanes and wildfires. There are different factors at play in all three states, but similar outcomes are happening: More people are being driven to the state-supported insurer of last resort, where they typically have to pay more money for a narrower policy.

 

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