U.S. Senator Sherrod Brown (D-OH), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, has called for a review of the home insurance market due to instability and rising premiums affecting many Americans. In letters addressed to Federal Insurance Office Director Steven Seitz and Comptroller General of the United States Gene Dodaro, Brown highlighted concerns over increasing home insurance rates, shrinking coverage, and unexpected non-renewals.
"I have heard of Ohioans and homeowners around the country experiencing rising home insurance rates, shrinking coverage, and surprise nonrenewals. In 2023, home insurance rates jumped double digits nationally, with some states experiencing rate hikes of more than 20 percent," Brown wrote. "As customers face rising insurance rates, these additional costs make housing less affordable for homeowners and renters and make it more difficult to maintain existing housing stock and develop new housing supply."
This request follows an ongoing effort by Brown to address challenges in the home insurance market. Last September, he held a hearing focused on these issues and potential solutions.
The letter sent to Comptroller General Dodaro emphasizes the need for a comprehensive review by the Government Accountability Office (GAO) of both single- and multifamily home insurance markets. The review is intended to examine factors contributing to market instability and escalating costs for policyholders.
"As you know, the state of the home insurance market remains challenging for consumers across the country," Brown stated in his letter. "Long-time insurance customers now find their policies dropped, coverages capped, face dramatic premium increases beyond many consumers’ ability to pay or suffer from limited or no availability of coverage as insurers exit states."
Brown's letter requests that GAO consider several aspects during its review:
- The current state of the home insurance market.
- Factors creating volatility in the market.
- Effects of insurers non-renewing customers or exiting markets.
- The practice of insurers providing less coverage for higher rates.
- Sustainability of residual markets as traditional coverage becomes scarce.
- Impacts of global reinsurance markets on costs.
- Benefits or limitations posed by state regulation in responding to this crisis.
The Senator concluded his letter by urging prompt attention to this matter.