Insurance shortfalls may turn cheap homes into costly futures
Rising homeowners insurance costs, surging nearly 74% nationally over the past 15 years and spiking even more in states like Texas and Oklahoma, are threatening the long-term affordability of homeownership. These cost increases are driven by frequent natural disasters, higher reinsurance costs, and insurers hitting unsustainable loss ratios, prompting the use of AI-driven risk models and shifts to surplus-lines coverage. While the situation is challenging, data analytics and innovative risk pricing could help stabilize insurance availability and affordability in high-risk areas.
