A really good question… especially in areas more prone to natural disasters.
I’ve heard horror stories of insurance premiums in places like Florida (and in same cases, situations where homes aren’t insurable) and have wondered the same.
Just how doomed is home insurance? [Vox] – “Right now, that leaves a trio of unpleasant options. Insurers can raise their rates in line with the risks they face, pricing more people out of coverage and leaving them to fend for themselves. Regulators can limit rate hikes and enforce coverage minimums, which can drive private insurers into bankruptcy or out of the market altogether. Or the government can subsidize or offer its own coverage, which would leave taxpayers holding the bag for mounting losses.”