Number of Homeowners Without Insurance Is Rising

One estimate says the figure is 12%, more than double the rate in 2019
By John Johnson,  Newser Staff
Posted May 28, 2024 11:38 AM CDT
Number of Homeowners Without Insurance Is Rising
A road is filled with debris from destroyed homes and businesses in Fort Myers Beach, Florida, after the passage of Hurricane Ian in September 2022.   (AP Photo/Rebecca Blackwell, File)

Millions of Americans find themselves in a once-unthinkable position: They're homeowners without home insurance. A look at the numbers and the factors at play:

  • On the rise: In 2022, 12% of homeowners had no insurance, up from 5% in 2019, reports the Washington Post, citing stats from the industry group Insurance Information Institute.
  • Another: The Consumer Federation of America had a lower estimate of uninsured homeowners—7.4%—in a report earlier this year, though the Post notes the figure is based on older stats and will surely be revised when 2023 numbers come out. Even so, that would represent more than 6 million homeowners, per USA Today.

  • Factors: In some parts of the country, insurers are pulling out because of the rising costs of damage from natural disasters. In other cases, steep hikes make the cost unaffordable. The Post speaks to a family in California's Santa Cruz County who received quotes for up to $25,000 a year after they were dropped by State Farm. Overall, average home insurance policies in the US were up about 11% last year.
  • Demographics: The CFA report found that the insurance problem affects a disproportionate number of Black, Hispanic, and Native American homeowners. "Over time, insurance access is likely to become a key decider of who can fully reap the benefits of homeownership, including maintaining their home and building wealth," it reads.
  • Mortgage complications: Most mortgages require insurance, and if a homeowner stops paying on their policy, a bank will often pick a plan and impose the cost on the homeowner anyway, per the Post. Those whose homes are paid off make up the majority of uninsured homeowners—an estimated 14% of people who own their homes outright skip insurance, according to the CFA.
(More home insurance stories.)

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