“It just wasn’t really on their radar flood was the major driver of default,” Kearns said. Kearns agreed, saying that federally backed mortgage giants Fannie Mae and Freddie Mac are starting to take notice of some insurance companies in California removing fire coverage from their policies, or not issuing new policies altogether. If the answer is insurance is really expensive and hard to get, he added, “then homebuyers are saying, ‘I’m not going to pay as much for this house, because it’s simply not worth as much.’” “It stands to reason that if you’re a homebuyer, you’re going to ask the question, what’s it going to cost me to insure this place, and can I get insurance?” Jones told CNN in a recent interview. Homebuyers also need to factor higher premiums into their monthly payments, reducing the amount of home they can afford – assuming they can get a policy at all. Homeowners who have had to take on a higher insurance premium may have a tougher time selling their home. There’s also evidence that the emerging insurance crisis is already having an impact on home prices, said David Jones, the former California insurance commissioner and director of the Climate Risk Initiative at UC Berkeley’s Center for Law, Energy and the Environment.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |