Latest news with #SharonCornelissen
Yahoo
08-05-2025
- Business
- Yahoo
Homeowners reeling as staggering new cost sweeps across thousands of zip codes — here's what's behind the surge
Homeowners across Texas are feeling the financial squeeze as insurance premiums skyrocket, and extreme weather is a major driver. A recent report from the Consumer Federation of America found that Texas has the sixth-highest average home insurance premiums in the U.S., at nearly $4,800. In the Dallas area, it's even worse — $4,900 a year, a 32% jump since 2021, according to the Dallas Morning News. Why? More destructive storms, rising construction costs, and loose state oversight are all playing a part. Texas experienced a 27% increase in premiums over just three years, according to the Dallas Morning News. The national average increase? $648. Insurers hiked rates in 95% of ZIP codes, costing U.S. homeowners an estimated $21 billion more in 2024 compared to 2021, as noted by the report. And as climate disasters pile up, things could get worse. In 2024, the U.S. was hit with 27 billion-dollar weather disasters that totaled nearly $183 billion in damages, according to Insurers have responded by raising rates or pulling out of states like Texas, California, and Florida, citing unsustainable risk. "One of the reasons behind this sharp premium hike is due to the rise of extreme weather events, such as tornados, hail, and severe winds and storms," Sharon Cornelissen, the director of housing for the Consumer Federation of America, said in a statement to the Dallas Morning News. This crisis doesn't just impact insurance. For many, coverage is the only thing keeping them in their homes, especially with most lenders requiring it. Without affordable options, more families could be forced to leave the places they've lived for generations. Officials are scrambling to stabilize markets, even relaxing rules to keep insurers in-state. But these short-term fixes may not be enough as climate risks grow. The root of the crisis is our changing climate, fueled by burning dirty energy like oil and gas. But there's hope. Do you think your city has good air quality? Definitely Somewhat Depends on the time of year Not at all Click your choice to see results and speak your mind. Global renewable energy capacity grew by 50% in 2023, and Americans now have more access than ever to solar panels and community clean energy programs — many of which come with incentives and savings. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
CNBC
28-04-2025
- Business
- CNBC
Homeowners insurance has risen over 50% in these states
Homeowners insurance rates have risen dramatically, from an average of $2,656 annually in 2021 to $3,303 in a 24% increase, more than twice as fast as the rate of inflation in the same timeframe. But the increase hasn't been uniform: According to a new report from the Consumer Federation of America (CFA), some states have been hit harder than others. Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent offers two tiers of homeowners insurance coverage — a standard policy and the brand's unique Platinum Choice homeowners insurance. The latter offers extended coverage for jewelry, liability and covers more situations than a standard homeowners insurance policy. Add-on options include computer coverage, sump pump backup coverage, and dwelling replacement doesn't underwrite its own insurance policies. Through its HomeQuote Explorer platform, however, it gathers multiple quotes from over a dozen top insurers to help you quickly compare and save. The sharpest spike was in Utah, where they soared 59%, from an average of $1,126 in 2021 to $1,795 just four years later. The chief culprits, according to Utah Insurance Commissioner Jon Pike, are more homes being built in wildfire-prone areas and a traditionally underpriced insurance market finally adjusting for inflation. The top five biggest increases were in: "The skyrocketing price of insurance premiums is deepening the housing crisis … and homeowners across the country are feeling the strain," CFA Director of Housing Sharon Cornelissen said in a statement. The report analyzes data from Quadrant Information Services, which collected rates from more than 100 insurance companies across nearly every ZIP code for a homeowner with a mid-range credit score and a house with a $350,000 replacement value policy. In only three states did premiums decline or remain stagnant. According to the CFA, the most expensive states to insure your home are Florida, Louisiana, Oklahoma, Kentucky and Nebraska. In Florida, a homeowner with fair credit and $350,000 in dwelling coverage could expect to pay $9,462 a year, or $789 a month, in 2024. That's a bump of nearly 30% from 2021, when the same policy would average $7,344. Several factors have driven up premiums, according to the CFA: To address this crisis, the CFA's report urges increased action by both the state and federal government to regulate insurers and protect consumers. "The insurance commissioners and lawmakers we depend upon to ensure that this critical coverage is available and affordable have not done enough," said CFA Director of Insurance Douglas Heller. "Americans are stuck buying insurance from companies that our public officials seem afraid of." Despite rising premiums, there are ways homeowners can lower their monthly premiums. Many insurers offer bundling discounts for taking out both home and auto policies. Not only do members save, but they enjoy the convenience of all their policies being on the same app or website. One of the country's largest home insurers, Allstate earns praise for its customizable policies and competitive rates, and customers can save up to 25% by bundling car and auto policies. The best way to estimate your costs is to request a quote Yes Allstate offers auto insurance customers a total of 14 discounts in addition to a pay-per-mile car insurance program. It offers quotes by phone, through an agent, or online. The company also offers a number of other insurance products to bundle your coverage and save. The best way to estimate your costs is to request a quote Not disclosed Yes Allstate's homeowners insurance can help you cover your living space with a variety of optional coverages and discounts. Standard homeowners insurance through Allstate can cover your home's dwelling, your liability and personal property, and guest's medical expenses. Optional coverages include HostAdvantage to cover your belongings when home-sharing, and flood insurance through the NFIP. Coverage for flooding is additional. Bundling isn't always cheaper, however, so get several quotes with the same coverage limits and deductibles when you are comparing. If your premiums are going through the roof, see if you need all the coverage you're paying for. To estimate how much insurance you need, you should find out the cost of rebuilding your home. Check with a local real estate agent or builders association about per-square-foot building costs in your area. Then multiply that figure by the total square footage of your worth reviewing your personal property policy, as well. If you sold your art collection, for example, you can cancel the floater you took out on it. Don't skimp on coverage simply to save money, though, or you could pay dearly if disaster strikes. If you're in a position to cover more out-of-pocket costs, you could save on month-to-month costs by raising your annual deductible. According to the Insurance Information Institute, an increase from j$500 to $1,000 could save you as much as 25% on premiums, Take a good look at your emergency fund and make sure you can afford the upfront costs if something happens to your home. In most states, insurance companies consider your credit history when calculating your monthly premiums. While your insurance score is different from your FICO score, it's determined using many of the same criteria. A strong track record of on-time payments can help boost your insurance score, as can paying the full balance every month.' Look for insurers that issue policies in your state, meet your budget requirements and offer the coverage you need. Any contenders should also be financially solid (usually with an A+ or better from A.M. Best) and have high customer satisfaction scores from J.D. Power. Nationwide made our list of the most affordable homeowners insurance and ranked above average for customer satisfaction with the claims process in J.D. Power's 2024 survey. The best way to estimate your costs is to request a quote Not disclosed Yes Policy covers home and property damages caused by theft, fire and weather damage. It also covers personal liability, loss of use and unauthorized transactions on your credit card Water damage, earthquakes, flood insurance, identity theft, high-value items, rebuilding home after loss (these can all be purchased as add-ons for extra coverage) Terms apply. The increase in the number and severity of severe weather has led to a spike in claims in many parts of the country, as has the increased cost of labor and housing materials. The cost of homeowners insurance is impacted by where you live, the condition of your home and the amount of coverage you want— as well as personal factors like your credit history, marital status and history of filing claims. Comparing quotes from at least three insurers should help you find cheap homeowners insurance. According to the Insurance Information Institute, a quick way to estimate the amount of insurance you need is to multiply the total square footage of your home by local, per-square-foot building costs. A local real estate agent or builders association can help determine construction costs in your area. There are many reasons you may be rejected for homeowners insurance, from your property being in a high-risk area to your history of filing claims in the past. If you've been turned down numerous times, see if your state offers Fair Access to Insurance Requirements (FAIR) plans, which enable high-risk homeowners to get coverage. You may also want to look into a surplus line policy. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every homeowners insurance article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of homeowners insurance. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here.
New York Times
07-03-2025
- Business
- New York Times
Buying a Home? Without the Consumer Bureau, You Need to Be Your Own Watchdog.
House prices are stubbornly high, and mortgage rates remain substantially above their prepandemic level. Now, with the spring home buying season looming, shoppers have a new worry: A major federal consumer watchdog has been hobbled. Without the Consumer Financial Protection Bureau, the agency responsible for overseeing most aspects of the home buying process, consumer advocates say home buyers need to be their own watchdogs. 'Now, when you buy a house, you are much more vulnerable to being misled,' said Sharon Cornelissen, housing director with the Consumer Federation of America. 'It's important to be on guard, because guardrails are being taken away.' Buying a home is the biggest financial decision most Americans will make in their lives. The typical home price is about $397,000, according to the National Association of Realtors, but prices are far higher in some parts of the country. In several California counties, for instance, the median price at the end of last year was over $1.5 million, with monthly mortgage payments over $8,000. What role has the consumer bureau played in home buying? The consumer bureau was created after the financial and housing crisis in 2007-8 to streamline oversight of lenders and financial companies serving consumers. Over the years, the bureau has moved to ease the mortgage shopping process by offering simplified forms and educational tools, and has taken action against an array of banks and lenders. In 2022, for instance, the bureau ordered Wells Fargo to pay $3.7 billion for mishandling a variety of customer accounts, including improperly denying thousands of requests for mortgage loan modifications that in some cases led borrowers to lose their homes to 'wrongful' foreclosures. On Jan. 17, in the final days of the Biden administration, the bureau reached a settlement with Draper and Kramer Mortgage Corporation for discouraging borrowers from applying for loans to buy homes in majority Black and Hispanic neighborhoods in Chicago and Boston. In an email, the lender's lawyers said Draper and Kramer 'considers the matter closed and denies' the bureau's claims, but chose to settle in part to avoid 'protracted legal costs.' Want all of The Times? Subscribe.
