NEW YORK, Dec. 16 (Xinhua) -- Americans' hold on homeownership slip away as insurance costs balloon beyond their ability to pay, with a combination of broad economic trends -- labor shortages, inflation, higher reinsurance and rebuilding costs -- and more costly and uncertain extreme weather events are driving up premiums, reported The Washington Post on Monday.
"Homeowners face an unsettling reality: insurers are passing these costs to consumers with higher rates and more restricted coverage," noted the report. "In some states, insurers have stopped issuing new policies altogether. Ordinary Americans must now make hard calculations: can they afford to stay, or is there a way to navigate this new insurance market?"
Underwriting losses among U.S. property insurers totaled 47 billion U.S. dollars in 2022 and 2023 alone, according to AM Best, a global credit rating agency.
"Property insurance premiums have risen by more than 30 percent since 2020, the last full year the industry posted an underwriting profit," said the report.
"And insurers are still fleeing markets -- seven out of California's top 12 carriers have curtailed coverage over the last two years -- or going bankrupt. Public plans, once a last resort, are the largest (and sometimes only) affordable option in 'insurance deserts,' where private insurers no longer offer new standard policies," it added.
