As Insurance Rates Rise, So Does Bank Risk

Just how quickly is the cost of homeowner’s insurance rising? Last year, the average premium for an annual policy in the U.S. was 20% higher than just two years earlier, according to Insurify. The increase is expected to easily eclipse inflation again this year.  

Market dynamics and the interest-rate environment play a role in this trend. But in areas at higher risk of disastrous wildfires or storms, rates have risen by much more than the average: …