Urban Insurance Solutions Boost Downtown Home Values

Researchers developed the Local Insurance Strain Index (LISI) to measure homeowners insurance stress using affordability, availability, and profitability data. Insurance strain peaks in city centers, with premiums 39% higher and nonrenewal rates 20% higher than suburbs, driven by risks like crime, older housing, and costly repairs. Higher insurance strain correlates with lower home prices and rents, especially near downtown, impacting urban housing affordability.