ARTICLE

Americans Abandon Home Insurance: An Ominous Sign In Era Of 'Bidenomics'

News Image By Tyler Durden/Activist Post August 30, 2023
Share this article:

In yet another ominous sign, consumers are being pushed to the financial brink, leading some to abandon homeowner insurance due to soaring premiums. Without this coverage, homeowners are left vulnerable to fires, burst pipes, theft, vandalism, and windstorms.

"Some skipping insurance say they are doing so because they can no longer afford the rising premiums," said The Wall Street Journal. New Bankrate data shows insurance on a $250,000 home jumped to $1,428 annually, up 20% from 2022. That's about a $119 monthly payment.

Amy Bach, executive director at United Policyholders, a national nonprofit insurance consumer-advocacy group, said an increasing number of homeowners in the past several years who have no mortgage or inherited a home are abandoning insurance because they can't afford it.


"It is a risky proposition to go without home insurance, and you need to fully understand the financial consequences if you lose your home," said Noah Damsky, a financial adviser in Los Angeles.

WSJ spoke with Larry Farinholt, who owns a 1,100-square-foot home in the Los Angeles metro area and last had home insurance a quarter century ago. He estimates a $50,000 savings, though if anything happened, such as a fire, he would be devastated:

"It would probably be financially devastating if I lost my house." 

The good news, unlike a majority of Americans who live paycheck to paycheck, Farinholt said if disaster struck, he would be able to afford a condo due to his savings.

According to a 2023 survey by the Insurance Information Institute, an industry trade group, and the reinsurer Munich Re, about 12% of US homeowners don't have homeowners insurance -- and half of them have household incomes under $40,000 per year.

Some borrowers cannot service their mortgage debts, blaming late or missed payments on rising insurance premiums, Rick Sharga, founder and CEO of CJ Patrick, a real-estate consulting firm, said.


Meanwhile, insurance companies have said premiums are rising because of inflation:

"The cost to insure new home customers in California is far higher than the price they would pay for policies due to wildfires, higher costs for repairing homes, and higher reinsurance premiums," said a recent statement from Allstate explaining its decision to stop writing new policies. 

Matthew Carletti, an insurance industry analyst for JMP Securities, said the rebuilding and replacement home costs have surged between 2019 and 2022.

Similar surges have been seen in auto insurance, citing the same reasons: rising part and labor costs.

Homes and automobiles are becoming even more unaffordable for the working poor, forcing some into a dystopic lifestyle where they own nothing.

And according to WEF, they'll be happy...

Originally published at Activist Post - reposted with permission.




Other News

October 06, 2025Disconnected: New Censorship Controls That Can Shut Off Your Phone & Internet

Not just banned or blocked but disconnected. That is the new proposal coming out of Canada to deal with 'threats' to those in power. A fut...

October 06, 2025The Great Surrender: When The Church Crowns Rebellion As Leadership

In naming a pro-abortion feminist as its next Archbishop of Canterbury, the so-called "Mother Church" of Anglicanism has publicly declared...

October 06, 2025Revival And Collapse: Two Sides Of America's Church Moment

Churches that once sat half-empty are filling up again. Young adults--some who hadn't darkened a church door in years--are showing up, pra...

October 06, 2025First The UK, Now Switzerland: Digital IDs And the March Toward Global Control

First the UK, now Switzerland just became the latest nation to approve a nationwide digital ID system. The vote was close--nearly half the...

October 03, 2025America's Financial Crossroads And The Coming Economic Avalanche

For the first time in U.S. history, so much of America's collective wealth is tied up in the markets that a correction could do more than ...

October 03, 2025People Are Going Back To Church - But What Theology Are They Going Back To?

Some Christian leaders are warning that the spiritual awakening happing in recent weeks could falter if churches lack biblically anchored ...

October 03, 2025China's War Clock Is Counting Down To 2027 - Will The US Defend Taiwan?

China is not only talking about Taiwan, it is preparing-methodically, systematically, and aggressively-to seize it, possibly as early as 2...

Get Breaking News