Welcome back, Dreammakers, to Today in Mortgages! In this episode, hosts Michael and Richard talk about high insurance costs. Affordability is becoming a big problem in the United States. Insurance and property taxes have been driven up in the last few years, and according to today’s article from Insurance Business Magazine, “Insurance could kill mortgages in some of the US – Powell.”

In the recent Fed meeting Powell commented on insurance, and how it’s increased more than normal the last few years. This is largely due to regions around the gulf, California, Texas and Florida who have an increasing amount of weather events. The insurers in these regions have to share the costs amongst all of the areas they cover, but at some point they can’t stay competitive, so we are seeing insurance carriers pulling out of these regions altogether.

This is a considerable factor in the affordability piece of buying a home right now. Hopefully, the market finds solutions for this insurance problem soon. But, in the meantime we suggest you find a trusted insurance advisor who will take care of your clients. Listen in as we discuss this and more!

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