High insurance premiums are affecting the housing market. According to Realtor, homes might stay on the market longer. They find that prices are often pushed down, and many deals are falling apart.
Realtor said that almost half the homes in the United States are at risk of severe or extreme damage from environmental threats. But how many deals are falling through due to insurance, and how much are home policies costing?
What’s the Effect of Insurance on Home Pricing?
According to S&P Global, insurance premiums could directly affect a home’s value. Under certain conditions and assuming future excess insurance premiums are incorporated into current home values, there could be as much as a 10 percent discount on prices if premiums are expected to rise 20 percent annually for the next 20 years.
Anne Johnson was a commercial property and casualty insurance agent for nine years. She was also licensed in health and life insurance. She went on to own an advertising agency, where she worked with businesses. She has been writing about personal finance for 10 years.
