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59 May 2025 May 2025 ยป E X P E R T I N S I G H T S Q: Do you feel the government is doing enough to protect homeowners in at-risk areas? What more can be done by both the government and the industry to protect this population? Chris Schafer: I do not think the government is doing enough to protect homeowners right now, but I also do not believe anyone has a compelling solution. When we look at states like California and Florida, they could not be any more different politically. But both are embroiled in an insurance crisis. This tells me neither party has a solution for the challenges we are actively facing. Q: As climate change continues to evolve, is there an affordable solution on the horizon for those who have seen their policies skyrocket? Chris Schafer: I think the definition of "affordable" in insurance is about to change dramatically. Extreme weather has really altered the insurance landscape. Insurance companies have reevaluated how they rate extreme weather risk. Some have excluded certain weather perils from their coverage. Homeowners have seen premiums increase by 20% between 2021 and 2023. Our new normal is going to become more expensive. In certain areas of the country, home insurance rates are starting to play an integral part in determining whether you will be able to afford a home. Q: Is the number of locations targeted as most at-risk for natural disasters increasing or decreasing? What are some of the risks these homeowners face in these regions? Chris Schafer: I would say, the number of locations considered at-risk of natural disasters are increasing. The frequency and severity of weather events have continued to increase across the nation. There are convective storms in the Midwest, causing roof damage. Wildfires in the West are projected to increase 14% by 2030. Hurricanes plague the South, and the Northeast has had to endure storm surges. Q: What does the future hold for the homeowner insurance market moving forward? Chris Schafer: In 2025, home insurers will continue to increase rates to try to align rates with localized climate risk. This year, reinsurers started changing their requirements at a regional and state levels to address more localized severe weather patterns and associated risk where they have not before. I expect that pattern to continue in 2025. Coverage offerings will continue to evolve, and homeowners are likely to participate in rebuilding or replacement costs to a greater degree. "When we look at states like California and Florida, they could not be any more different politically. But both are embroiled in an insurance crisis. This tells me neither party has a solution for the challenges we are actively facing."