Kathmandu. Millions of families in the US are at risk due to high home insurance premiums.
This was revealed in the 2024 report released by the US Federal Reserve (Fed) in May. The majority of Americans surveyed said they did not have home insurance because of high premiums. More than 12,000 respondents said they did not have home insurance.
Americans at risk from climate change disasters such as hurricanes, forest fires and floods say they don’t have home insurance because premiums are high. Forty-three per cent of those surveyed said they were not in a position to insure their homes. 14 percent of the participants said that the cost of insurance is not worth it.
According to the Fed report, about 7.5 percent of Americans are out of the home insurance coverage. Which is about 6.1 million houses. These households are at high risk of natural disasters caused by climate change, the report concluded.
The average home insurance premium in the U.S. is currently $3,303 a year. The monthly home insurance premium costs $275.
In the U.S., home insurance premiums have been rising since 2013. According to the report, the premium of home insurance has increased by 20 to 30 percent so far.
The Us Consumer Federation has suggested a revision in the premium of home insurance. In addition, insurance companies should also make public the details related to home insurance premium, facilities to the insured and claim payment in a transparent manner. – Agency
