Home Insurance Market Breakdown

Market Trends and Risks

The home insurance industry has been facing a growing problem: residential insurance risk. The industry has identified this risk as a major concern, and plans to address it have more than doubled their market share since 2018. However, despite these efforts, liabilities crossed the 1 trillion threshold, leaving state home insurance programs sitting on 1 trillion in risk.

Impact of the Issue

The crumbling home insurance market in New Orleans highlights the severity of this issue. Alfredo Herrera, a homeowner in the city, has been left with few options as insurance companies retreat from the area. Similarly, a report by the Consumer Federation of America (CFA) reveals that over six million homeowners lack insurance, leaving 16 trillion at risk. Rural homeowners, as well as those living in the metropolitan areas of Houston and Miami, are particularly vulnerable to this problem.