Home Insurance Is Becoming Increasingly Unaffordable

Home insurance rates are skyrocketing faster than home prices and overall inflation, draining homeowners of billions of dollars in premiums amid rising policy cancellations — driven in part by insurers’ use of artificial intelligence to assess risk.

Home insurance has never been more expensive: across all fifty states, rates are skyrocketing faster than home prices and economy-wide inflation, draining homeowners of billions of dollars in premiums amid rising policy cancellations — especially as insurers turn to artificial intelligence to determine risk.

As the Lever reported last year, the process for handling the financial risks of homeownership is breaking down as the planet melts: insured losses from natural disasters in the United States now approach $100 billion a year, up from less