Homeowners are losing insurance coverage left and right, and one group of people is more at risk than others.
What's happening?
More than half of homeowners in the 18-34 age bracket had their policies nonrenewed or canceled from January 2021 to January 2024, Policygenius reported in May. Only 5% of those over 55 experienced nonrenewal or cancellation. The figure was 15% for ages 35-54.
The 51% mark was attributed mostly to failed home inspections (22%) and filed claims (22%). Only 4% and 6% of homeowners 35 and older said a failed inspection or filed claim led to nonrenewal or cancellation.
This young cohort was also four times more likely to lose coverage because either their carrier no longer did business in their area or where they lived was a high risk for natural disasters. The figures were 16% and 18% for 18-34-year-old homeowners and 3% and 3% for those 35 and older.
"Insurance companies conduct home inspections less often on properties that have had a policy in force for several years," Angelé Doakes of Policygenius said. "This could account for the disparity between younger and older homeowners when it comes to inspection-related nonrenewals or cancellations."
Why is this important?
Natural disasters such as hurricanes and wildfires are becoming more intense as the global temperature rises, and it's part of the reason insurance companies are changing their business strategies.
Across the United States, policy writers are pulling back, deciding not to renew contracts, cancel coverage, and otherwise drop customers.
Policygenius noted that Florida, California, Texas, and Louisiana are "in the midst of a home insurance crisis or nearing one due to natural disasters brought on by climate change." It also said 18% of those surveyed — YouGov did the polling — would not move to those states because of rising insurance rates.
Homeowners were generally willing to make sacrifices to find affordable housing, and younger people were more willing to do so, Policygenius reported, with 82% answering in the affirmative to 68% of 35-54-year-olds and 53% of those 55 and older.
What's being done about homeowners insurance?
Where companies aren't withdrawing coverage, they are refusing to pay claims and raising rates. And some states are facilitating this kind of business. It's concerning because few people have the financial means to hurricane- or disaster-proof their homes.
Aside from taking such steps — including creating a buffer zone around your home if you live in a wildfire-prone area — the answer is to cut the consumption of dirty fuels, which is driving the rapid warming of the planet
To make a difference, vote for politicians who will take climate action; support corporations with environmentally friendly initiatives, such as plastic-free packaging; and walk, bike, or use public transit instead of driving.
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