New data exposes growing crisis impacting homeowners across the country: 'The consequences are devastating'

Increasing insurance rates aren't the only struggle homeowners in America are facing. According to Bankrate, an even more unsettling trend is happening as insurance companies are dropping homeowners and denying coverage. 

What's happening?

New data from Bankrate revealed which states have been most affected by rising insurance costs and nonrenewal rates. Per its reports from 2023, Florida had the highest nonrenewal rate, with homeowners having a 3-in-100 chance of being dropped by their insurance company. 

However, rising rates and decreasing coverage aren't just happening in Florida. According to Bankrate, data also showed that 35 states experienced an increase in nonrenewal rates between 2018 and 2023, with Louisiana, North Carolina, California, and Massachusetts right behind Florida. The majority of the country is experiencing more difficult coverage. 

Homeowner insurance policies are a complicated process — and they are impacted by numerous factors — but experts still highlight extreme weather events as a key catalyst behind rising costs and decreasing coverage. Bankrate put the impact of rising global temperatures on insurance rates into perspective, noting that 97% of insured losses in 2024 were due to natural disasters.

"One record-breaking high after another — the consequences are devastating," Thomas Blunck, board of management member for Munich Re, a global reinsurance company, told Bankrate. "The destructive forces of climate change are becoming increasingly evident, as backed up by science. Societies need to prepare for more severe weather catastrophes."

Why are homeowner insurance trends important?

Coverage is becoming less affordable for homeowners as rates continue to rise. On top of that, residents in areas more vulnerable to extreme weather, such as Florida and California, are struggling to find coverage altogether. 

These trends also highlight the consequences of rising global temperatures. As companies around the world continue to use dirty energy, they emit harmful pollutants into the atmosphere that ultimately cause temperatures to rise and lead to more powerful storms. With extreme weather events becoming stronger and more frequent, insurance companies no longer want to back homes in areas that are prone to natural disasters. 

What's being done about rising insurance rates and lack of coverage?

This is leading some homeowners to turn to non-admitted insurance companies for coverage. However, this is merely a short-term solution for a more encompassing problem. To help combat extreme weather and safeguard vulnerable communities, countries can transition to renewable sources of energy. By utilizing clean power, such as solar and wind energy, homeowners and companies can reduce the total amount of pollution and counteract rising global temperatures. 

Do you think your city has good air quality? Definitely Somewhat Depends on the time of year Not at all Click your choice to see results and speak your mind.

Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.