Marie Janelle Pike

Premiums projected to ↑ **8%** in 2026 and another **8%** in 2027, totaling a **16%** surge.
Insurance now **9%** of avg. U.S. homeowner payment, highest on record.
Drivers: ↑ construction costs (**44%** since pandemic), supply chain issues, climate risks, and migration to high-risk areas.
Rising costs strain buyers and owners; **1 in 7** homes now uninsured, **58%** would drop insurance if too expensive.
AI-driven resilience scores and rebuilding strategies could lower premiums by over **20%** for some homeowners.

Prepare for 2027 Insurance Changes

Insurers seek regulatory approval to cap AI-related liability amid rising litigation and systemic algorithmic risks.

Liability caps may shift financial exposure from insurers to businesses deploying artificial intelligence systems.

Specialized AI insurance policies are emerging to address algorithm errors, data leaks, compliance failures, and IP disputes.

Many traditional E&O policies now exclude AI-related claims, requiring businesses to review coverage carefully.

Strong AI governance, tailored insurance, and proactive risk management are essential as accountability frameworks evolve.