Home insurance firms in Florida, California, Louisiana, and other high-risk states have either changed their underwriting procedures or decided not to offer policies in these states as climate change keeps aggravating the frequency of extreme weather and costly property damage. Homeowners, meantime, are left searching for coverage following policy cancellation or nonrenewal.
Of younger U.S. homeowners (ages 18 to 34), 16% stated their insurance was dropped because their insurer stopped providing coverage where they live, and 18% had their policy dropped owing to residing in a region at high risk of wildfires, hurricanes, and other natural disasters.
Non-renewals Or Cancellations That Most Affected Younger Adults Hardest
16% of U.S. homeowners had their insurance carrier cancel or non-renew their coverage between 2021 and 2024. Of them, 35% lost their coverage as they reside in an area at high risk of wildfires, hurricanes, or other natural disasters; 34% were dropped since the company no longer provides home insurance where they live.
Comparatively to 15% of homeowners aged 35 to 54 and 5% of homeowners aged 55 or over, fifty-one percent of younger homeowners (aged 18 to 34) had their homeowner insurance nonrenewed or canceled in the last three years. Among younger homeowners, a failed home inspection (22%) and filing a claim or several claims (22%) were the most often mentioned causes of canceled or nonrenewal. Just 4% of all homeowners 35 and older claimed their policies were canceled because of a failed house inspection, and just 6% claimed a claim or several claims.
Less typically for homes where a policy has been in effect for some years, insurance firms do home visits. This can help explain why younger and older homeowners view non-renewals or cancellations differently.
Additionally, younger homeowners were four times more likely than older homeowners to have their policies withdrawn because their insurance company no longer provides home insurance where they live or from residing in a region highly prone to hurricanes, wildfires, or other natural catastrophes. Sixteen percent of younger homeowners stated their insurer no longer provided coverage in their area, compared to 3% of homeowners ages 35 and older, and 18% of younger homeowners said they were dropped from their coverage because of their property's natural disaster risk. That's compared also to just 3% of homeowners ages 35 and older who had their policy canceled or nonrenewed for the same reason.