How The Next Housing Crisis Will Break America

What happens to the housing market when you can’t insure a home? Most lenders require home insurance, so losing coverage can make a home harder to sell and leave buyers unable to get a mortgage. The average single-family mortgage holder pays $209 a month for coverage, nearly 80% more than in early 2020. It costs more to rebuild after a fire or hailstorm, and when insurers pay more for their own coverage, called reinsurance, some of that cost shows up in the premium. In some places, insurers are refusing to renew policies. One California homeowner lost coverage after an aerial photo raised questions about her roof, even though an independent inspection found it had ten years left. Another lost coverage after draining her pool to save water. Some homeowners end up on plans like California’s FAIR Plan, where they can pay more for less coverage. Dallas Fed researchers found that higher premiums make borrowers more likely to fall behind on their mortgages. If enough homes become too expensive or impossible to insure, fewer buyers can get financing, home values can fall, and lenders can take losses. That’s how a home insurance problem could turn into a housing crisis with echoes of 2008. LinkedIn: https://www.linkedin.com/in/hariharan-jayakumar-silo Instagram: https://www.instagram.com/hariharan.jayakumar/ TimeStamps: 0:00 - Home Insurance and the Housing Market Introduction 0:55 - Premiums 5:05 - The Retreat 10:04 - Insurability Crisis Sources: https://pastebin.com/tPpEenJS

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