Is It Time For Allstate To Consider Rebranding Itself as Thirtytwostate ?

You’re in . . . hands. Insurers writing homeowners policies across the country are losing money - in 2023 alone, insurers in 18 states were unprofitable. Meaning that, thanks to climate change and extreme weather, we’re finally hitting the point where claims are regularly exceeding collected premiums across the country. Those of us in South of Interstate 10 are no stranger to the exodus of insurance companies, rising premiums, or state insurers of last resort. If California, Florida, and Louisiana were getting lonely in the spotlight for having a bad homeowners insurance market, it turns out there’s plenty more room at the table. Problems have gotten notably worse in states previously thought to be low risk, like Iowa, Arkansas, Minnesota, and many others. Households across the Midwest are getting dropped by their insurers, and for many of those who still have insurance, deductibles have gone through the roof – literally. In Marshalltown, Iowa, two major storms, a tornado in 2018 and straight line wind event 2020, caused repeated concentrated roof damage in the area. Homeowners there are now being dropped by their insurer after just one or two claims, and those who still can get insurance have had premiums skyrocket and their deductible jump to $125,000.

?The connection between hurricane and wildfire risks and the growing insurance crises has been at the center of attention, but this recent data really paints a picture for how more isolated, severe storms are beginning to upend the homeowners insurance sector. As the number of insurers writing homeowners policies continues to decline, more and more folks will be pushed onto state insurers of last resort. And when you can’t get insurance, whether due to unavailability or unaffordability, you can’t get approved for mortgage. Even more, if your policy contains more damage exclusions or has a very high deductible, it could hinder the ability to recover after a natural disaster. Those who are able might choose to self-insure, but many more will likely be priced out, raising serious questions about the habitability of many places that don’t seem high risk today. But in order to mitigate climate effectively and equitably, there has to be plan in place.?

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