Homeownership can already be expensive enough, but one cost is rising — and may get even worse.
Driven by recent climate disasters, insurance premiums are rising astronomically across many states, significantly impacting residential and commercial real estate markets and, in some cases, even causing deals to fall apart due to high costs and limited insurance availability.
Some coastal states, like Florida, have been affected the most, but the varying impacts across the country are shifting the competitiveness of the real estate market and leaving many property owners at risk of losing their insurance coverage.
Read on for more about the challenges — and to learn if you're at risk. Plus, find out more smart money moves you can make as a homeowner.
If you’re over 50, take advantage of massive discounts and financial resources
Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.
How to become a member today:
- Go here, select your free gift, and click “Join Today”
- Create your account (important!) by answering a few simple questions
- Start enjoying your discounts and perks!
Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $15 the first year with auto-renewal.
Widespread insurance crisis
/images/2024/01/10/senior-couple-signing-health-insurance-contract.jpeg)
The insurance crisis has led to skyrocketing premiums and carriers leaving coastal states like Florida and California. This situation is spreading, fundamentally altering real estate markets nationwide.
Impact on real estate deals
/images/2024/03/15/couple-receiving-house-keys-from-realtor.jpeg)
The inability to secure affordable insurance is causing real estate deals to collapse. Bill Baldwin, a Houston realty owner, notes that insurance companies are imposing nearly impossible demands, leading to failed transactions.
Mounting insurance losses
/images/2022/08/09/hurricane_irma_and_tropical_storm_at_fort_lauderdale_florida.jpg)
Insurance companies themselves are grappling with substantial losses from natural disasters, with nearly $80 billion in insured losses last year. Climate risk is key, driving insurers to hike rates, shed risks, or limit new business.
Borrow up to $50k to finally crush your debt
If you have thousands in debt and you’re barely making it paycheck to paycheck, you know how suffocating it is. Debt is always on your mind. It controls your life. And even if you make on-time payments, they’re so expensive that you have nothing left over.
A personal loan could help you get out of this situation and lift your monthly debt burden significantly. You could finally pay off all of your debt at once, get rid of the sky-high interest rates, and slash your debt load to one manageable monthly payment.
AmONE is a marketplace where you can find some of the best personal loans available. They match you with loans up to $50,000 with rates as low as 2.49%. That’s better than most credit cards. And easier than draining your bank account every month. Seeing what you qualify for doesn’t affect your credit score, and if you’re approved, you could get money the next day.
Regional challenges
/images/2024/06/24/neighborhood-in-anaheim-orange-county-california.jpeg)
Due to recent hurricanes, Florida policyholders face premiums nearly five times the national average. California's insurance market is shrinking, and Louisiana homeowners are paying triple the national average, highlighting regional disparities.
The impact on corporate hiring
/images/2023/07/28/amazon_corporation.jpg)
High insurance rates are even affecting the labor market, as they complicate site selection and affect recruiting and hiring processes for big companies. This factor is even now part of CNBC's 2024 America's Top States for Business study, considering regional premium increases and living costs.
Trending Stories
Bottom line
/images/2023/03/23/male-realtor-hanging-sold-sign-outside-home.jpeg)
The impending insurance crisis, driven by climate disasters, is reshaping the real estate landscape and increasing homeowners' costs. While some experts hope for stabilization by 2025, states are taking various measures to address the issue.
Meanwhile, if you're buying a home, real estate pros advise clients to secure insurance early in navigating this challenging environment.
More from FinanceBuzz:
- 7 things to do if you’re barely scraping by financially.
- Are you a homeowner? Get a protection plan on all your appliances.
- 6 genius hacks Costco shoppers should know.
- Learn how you can escape the paycheck-to-paycheck grind.
Lucrative, Flat-Rate Cash Rewards
Wells Fargo Active Cash® Card
Current Offer
$200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual Fee
$0
Rewards Rate
Earn unlimited 2% cash rewards on purchases
Benefits
- Low spend threshold for its welcome offer — $200 cash rewards bonus after spending $500 in purchases in the first 3 months
- Cell phone protection benefit (subject to a $25 deductible)
- Can redeem rewards at an ATM for literal cash
Drawbacks
- Foreign transaction fee of 3%
- No bonus categories
- Apply Now to take advantage of this offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 19.24%, 24.24%, or 29.24% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Subscribe Today
Learn how to make an extra $200
Get vetted side hustles and proven ways to earn extra cash sent to your inbox.