Homeowners in the Bisbee area are grappling with the sudden and significant rise in the cost of homeowners’ insurance, making it increasingly challenging for many to afford adequate coverage.
Margaret Thomas, a resident of the Benson area, shares the sentiments of numerous homeowners who are feeling the strain of escalating insurance premiums. Thomas, who co-owns a home with her son, expresses concern over the sustainability of continuously rising insurance costs, questioning how much higher they will climb in the coming years.
The surge in insurance expenses isn’t confined to high-end properties or those heavily insured like Thomas’. Across the board, homeowners are experiencing substantial spikes in their insurance renewal policies for 2024. The impact is particularly severe in states like Florida, California, and Colorado, where homeowners are confronted with exorbitant rate hikes, making insurance nearly unattainable for some.
In Florida, known for its susceptibility to hurricanes, the windstorm portion of policies has doubled from $10,000 to an astounding $20,000. This astronomical increase has prompted many to contemplate drastic measures, including paying off mortgages to self-insure or relocating altogether.
Thomas recounts the shock of seeing her monthly premium surge by 35%, following a near-doubling in the previous year. The relentless escalation in insurance costs is placing an immense financial burden on homeowners, particularly retirees living on fixed incomes.
The surge in insurance expenses is attributed to various factors, including skyrocketing construction costs, labor shortages, and inflation. These challenges, coupled with the high price tag of purchasing a home amidst record-high mortgage rates, exacerbate the financial strain on homeowners.
Furthermore, the increased frequency and severity of natural disasters, attributed to climate change, are driving insurers to reassess risks and adjust premiums accordingly. Reinsurers, who provide insurance to insurers, have also raised rates significantly in response to mounting losses from natural disasters.
In Cochise County, where wildfires and other weather-related events pose significant risks, homeowners are acutely aware of the implications of rising insurance costs. Even seemingly minor factors, such as the condition of a home’s roof, can impact insurance premiums, further adding to homeowners’ financial burdens.
While homeowners like Thomas are left feeling powerless in the face of soaring insurance premiums, industry experts suggest that the landscape of insurance markets may undergo significant changes in response to evolving risks. However, for now, homeowners are left grappling with the reality of ever-increasing insurance expenses, making the prospect of homeownership increasingly daunting for many.
