Homeowners in Florida and California have seen a disproportionately high level of disruptions to their home insurance coverage, according to a new data study from Redfin (NASDAQ:RDFN).
The new Redfin-commissioned survey by Qualtrics was conducted in February and polled nearly 3,000 homeowners and renters. While less than half (44.6%) of homeowners nationwide reported rising home insurance costs or changes in coverage – including the termination of policies by insurers – nearly three-quarters (70.3%) of Florida homeowners and over half (51%) of California homeowners reported such disruptions.
Increased levels of natural disaster risks have prompted many insurers to stop doing business in Florida and California. Roughly one in eight Florida respondents (12%) and one in nine California respondents (10.7%) said their insurance company stopped offering coverage for their home – in comparison, the national share of homeowners who recently lost coverage was 8.3%. Florida and California homeowners also reported a higher rise in their insurance costs versus the national average.
“Homeowners living in areas where insurance premiums are surging are at risk of seeing their properties gain less value than homeowners in areas with stable premiums—and in some cases, they may even lose money,” said Redfin Chief Economist Daryl Fairweather. “Homes with low disaster risk and low insurance costs will likely become increasingly popular, and thus more valuable, as the dangers of climate change intensify.”
;
Please STOP with the climate change, it’s not man made, unless you’re talking about the arousal that’s being sprayed into the air!
Agreed
Nothing in the Redfin report about the high crime rate against property..guess it’s best to blame it on climate change…and come on people who rebuild in flood and hurricane areas know the risk. A study of only 3000 is not much of a study when you consider the total population of either state.