Priced Out of Coverage: Home Insurance and the Squeeze on Household Budgets

Home insurance is becoming harder to afford and, in some places, harder to get at all. As wildfires, floods, and hurricanes grow more destructive, premiums are rising sharply, insurers are refusing to renew policies, and some homeowners can no longer find coverage at any price. For many families, that puts more than their insurance policy at risk: without affordable coverage, a home can become difficult to finance, sell, or rebuild after a disaster.This seminar examines why insurance markets are changing, who is being hit hardest, and what policymakers can do to keep coverage within reach. We will explore options such as stronger rate review, incentives for home hardening, clearer risk information, and state-backed insurance programs, while asking how to balance affordability with the growing realities of climate risk. We will also examine new data on premiums, non-renewals, and insurance gaps to identify where families are most vulnerable and which policies are most effective at protecting them.The EconClimate Lab advances forward looking economic policy ideas that make energy policy benefit workers, communities, and the American economy.The conversation will be moderated by Heather Boushey, professor of practice at the Kleinman Center and former member of the Council of Economic Advisers and chief economist to President Biden’s Investing in America Cabinet.