Home Insurance Companies Struggle with Lower Profitability and Rising Costs

According to the Wall Street Journal, home insurers have struggled to maintain profitability throughout five of the past six years due to increased claims and inflation. To encourage profitability, home insurers are attempting to pass a portion of costs to consumers through raised premiums and deductibles, as well as other subsequent policy adjustments. Moreover, insurance companies have been pulling away from areas more prone to disasters, like Florida and California. Insured damage in the U.S. from severe weather-related incidents remains elevated – reaching $90 billion over the past three years.

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