Patrick Caldwell

Among the five biggest home insurers, ~44% of claims ended unpaid, versus ~36% in 2016, making policy review essential before disaster season.
Higher deductibles are a major reason claims miss payouts, especially when owners choose them for lower premiums or riskier coverage requires them.
Disaster policies may use percentage-based deductibles, risk-specific terms, and tighter roof standards, so homeowners should understand exclusions before filing claims or renewing coverage.
Standard homeowners policies exclude natural flooding and earthquakes, but separate flood and earthquake coverage may be available through public or private options.
A sector group saw early signs of market stabilization and hoped homeowners insurance would return to profitability during 2026, after difficult recent conditions.

US Home Insurance Claims Need Closer Review

Federal flood insurance makes coverage accessible, yet subsidies can lower the true cost of owning in risky coastal and waterfront areas nationwide.
Affordability is the bigger gap: in low-income neighborhoods, >90% of households are estimated underinsured, leaving flood losses harder to absorb after disasters.
Only ~37% of policyholders pay <$1K yearly, so some owners skip coverage or choose lower-premium plans with less disaster protection for recovery.
Severe repetitive loss homes are ~1% of insured properties but historically drew ~30% of claims, showing why mitigation support matters for safety.
Full-risk pricing may not arrive until ~2037; assistance, mitigation aid, and equitable buyouts can support safer low-income choices nationwide as transition continues.