Rising Insurance Premiums Contribute to the Cost of Homeownership

High cost of homeownership

Property taxes and home-maintenance costs are climbing in much of the country. Non-mortgage costs including property taxes, maintenance, utilities and insurance make up more than half of homeowners’ overall costs, according to a 2022 analysis by Fannie Mae economists. Worst of all, home insurance premiums are soaring. Rates rose by more than 10% on average in 19 states in 2023 after a series of big payouts related to floods, storms, wildfires and other natural disasters across the U.S.

Insurers Are in the Hot Seat on Climate Change

Aon Launches Climate Risk Monitor

Insurers are raising premiums and are cutting back coverage because of more damaging storms and wildfires, made worse by climate change. They insure the fossil-fuel producers whose products are blamed for causing climate change. And, as big investors, they fund these same companies. Most try to promote their climate bona fides.

The Captive Insurance Series: Exploring the Hard Market

Captive growth 2023 in Tennessee

As the insurance industry navigates this most challenging period, characterized by rising costs and claims and fierce competition, carriers have responded by ceasing to offer specific products, adding significant exclusions, or broadening existing ones in their policies. As a result, customers face higher premiums, larger retentions, and deductibles, and decreased liability limits. Amid these challenges, captive insurance has emerged as a compelling alternative to conventional insurance, providing a range of benefits to policyholders.