Insurers Shifting Catastrophe Costs to Consumers
Consumers in 11 states hardest hit by weather catastrophes in 2011 should brace themselves for homeowners insurance rate increases amounting to nearly $100 on every $500 in coverage.
Not that the hikes are necessary.
In a recent study, the Consumer Federation of America (CFA) says insurers are more and more often shifting the cost of weather catastrophes onto homeowners as they “significantly and methodically” decrease their financial responsibility for weather catastrophes like hurricanes, tornadoes and floods.
The scathing study says “the insurance industry has moved from its historic role as a calculated risk-taker to one of a risk-avoider, exposing consumers and taxpayers to much higher costs.”