Homeowner loss ratios increased from 75% in 2021 to 85% in 2023, with further increases expected in 2024 due to hurricane activity. Insurers are exiting markets, particularly in the Midwest, leading to tightening capacity. Rising costs of materials and labor contribute to increased claim severity. There is a significant affordability crisis, with many potential buyers backing out of the lending process. Insured losses reached $62 billion in the first half of 2024, indicating higher premiums driven by severe weather events. The lack of flood coverage remains a critical gap, particularly affecting areas like North Carolina.
Homeowner loss ratios have increased from 75% in 2021 to 85% in 2023, with forecasted elevated ratios due to anticipated hurricane activity in 2024.
Catastrophe-prone areas are experiencing increases over 10% as insurers cautiously re-enter markets, particularly facing tighter capacity in the Midwest.
The affordability crisis in the housing market is exacerbated, with record numbers of potential buyers backing out due to financial strain and rising insurance premiums.
Insurers reported $62 billion in insured losses in the first half of 2024, driven by the frequency and severity of extreme weather events.
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