Rising home insurance premiums create 'insurance deserts' across the U.S

Homeowners across the United States are facing a growing challenge as insurance premiums rise sharply due to increased climate risks. Many areas, dubbed "insurance deserts," see insurers withdrawing or significantly increasing their rates. Angela Hudgens, a website designer from Florida, shared her experience with Realtor.com, noting that her insurance costs have nearly doubled from $2,000 to close to $4,000 annually. "There’s a giant bump at every renewal, and you can barely afford to pay it," she said.

The problem extends beyond individual stories. A report by Realtor.com highlights that 44.8% of U.S. homes face severe environmental threats, putting almost $22 trillion in residential real estate at risk. This has led insurers to either raise premiums or exit markets entirely. More than 30 home insurance companies have left Florida alone.

Former Florida Sen. Jeff Brandes is addressing these issues through The Florida Policy Project, advocating for legislative reforms in insurance and housing sectors. He notes that "since 2023, Florida insurance consumers have continued to face challenges due to rate increases."

Insurance costs have risen over 30% nationwide since 2020, affecting states like California, Louisiana, and Texas among others. Max Dugan-Knight from Deep Sky warns that this is a national issue without "climate havens."

In Colorado Springs, Brian Rudderow received an unexpected quote of $13,000 per year for property insurance and chose not to insure his property for now due to high costs.

Leslie Kasperowicz of Insurance.com points out that several states are becoming "insurance deserts." Insurers are pulling back from high-risk areas such as parts of California and Louisiana.

Mark Friedlander from the Insurance Information Institute adds that some insurers are exiting markets like North Carolina due to escalating climate risks.

However, efforts are underway to address these challenges. Regulators aim to attract insurers back into difficult markets while adjusting rates according to risk levels.

For homeowners unable to secure private market insurance, government-backed programs like FAIR Plans provide coverage options in many states.

To mitigate risks and improve insurability of properties in high-risk areas, Alex Adekola recommends investing in resilient infrastructure like fire-resistant roofing.

As climate change intensifies these challenges will persist but there are steps homeowners can take including consulting independent agents for better policy options and preparing homes against extreme weather events.