Name: Why Americans Are Suddenly Losing Their Home Insurance
Uploaded: 2024-02-24T06:26:17.000Z
Duration: 13 min 12 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Past simple

It was our dream house from the beginning, even

thought it was over our heads, but we just worked

I have a 100 pound tortoise that I saved.

So yeah, I just love it. It couldn't be more

But Allstate, who insured Darlene's house for 18

years, recently sent her a non-renewal notice.

You can't just say after 18 years of being okay,

Home insurance companies are saying homes like

The nation's largest homeowners insurance

company, State Farm, has decided they won't accept

new applications for property in California.

Household names like State Farm, Allstate are pulling

out of these markets. They know the risk is just

too high to be actuarily sound for their business.

There are companies saying there are too many

buildings being destroyed by catastrophes, inflation

is making it too expensive to rebuild, and

they can't protect their investments any longer.

Losses are increasing related to climate risk.

As that risk increases, so does the cost of

insuring those assets that people have on hand.

But without homeowners insurance, many homeowners

can find themselves in big financial trouble.

I've been trying to find another insurance.

I had one company step up and said they'd do it for

But selling the home might not even be possible.

non-renewal letter from the private insurance

market, they essentially lose 12% of their property

Louisiana and Florida are contending with similar

uninsurable, and what will it mean for the

economy when so many homes lose some of their

value? Darlene bought her house for $420,000 at the

My girlfriend that I've known for close to 40

years. She's the one that brought me to this.

She lives two doors down and she said, 'you have to

buy this house.' So I had really no choice, but it

It's just perfect. I'm an outside person anyway.

So what's the most perfect is the outside.

I have a huge pasture for the horses and the

backyard had an artist come and she painted all

So when I go sit in my little girl area where we

have a little glass of wine, all my animals, even

the ones I've lost, are all painted on the side of

Darlene and her husband still owe about $360,000

on their mortgage. Most mortgage lenders require

home insurance as a prerequisite for the loan,

and 58% of Americans hold mortgages on their homes.

You are allowed to live in your home without

insurance. That would be called self-insurance.

whether or not that is a good or risky choice.

So in order to make sure that that investment that

the bank is making with you, should something

happen, a catastrophe of natural catastrophe or man

made catastrophe, if it happens, the insurance

The insurance business model works like this.

Companies assess the risk of damage happening to a

By insuring properties with varying levels of

risk, they are able to spread the liability for

the riskiest assets among the whole group.

They reserve some funds to pay out claims and

They typically make their profits via safely held

The insurance rate is a reflection of the risk.

Insurance rates are the effect of the risk, not

order to operate its business as it should in a

profitable manner, needs to do what it can to get

those insurance rates to better reflect the risk.

Though insurers are saying climate change, inflation

and the regulatory environment have created a

situation where it's difficult to operate a

profitable business in some locations across the

Subtitles ListPlay Video

Why Americans Are Suddenly Losing Their Home Insurance

vulnerable

essentially

absolutely

individual