Homeowners insurance is pricing people out in disaster-prone cities

Re:Homeowners insurance is pricing people out in disaster-pr... by petcat on Wednesday September 10, 2025 @11:15AM (#45199001)

Home owners in low-risk regions like upstate NY actually have to subsidize the solvency of insurers offering coverage in extreme-risk regions like Florida and the south.

Everyone's home insurance premiums should be lower than they actually are. Except they're not, because we have to pay to offset the cost of all the people rebuilding their houses on the Florida coast every few years.

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Re:Homeowners insurance is pricing people out in disaster-pr... by triceratops on Wednesday September 10, 2025 @12:18PM (#45199897)

I mean that's kind of a strong claim. Premiums are priced by risk. If insurees of one company in Florida are getting more than they pay in aggregate, then other insurance companies which correctly price the risk in NY will take all their customers.

This only holds for government insurance programs. And in that case all taxpayers are subsidizing them.

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Re:Homeowners insurance is pricing people out in disaster-pr... by ponector on Wednesday September 10, 2025 @04:01PM (#45202816)

And then there is a devastating hurricane, billions to be paid by insurers. Who you think give them money to pay?

The answer is: everyone who uses home insurance all over the world. They will keep insurance companies afloat while paing billions for the damage.

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Re:Homeowners insurance is pricing people out in disaster-pr... by ethbr1 on Wednesday September 10, 2025 @08:22PM (#45206053)

> Who you think give [insurers] money to pay?

Now? The NFIP and FAIR. Which is to say all citizens.

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