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<ul class="summary-list"><li>Two hurricanes hit Florida in recent weeks, exacerbating a home insurance crisis in the state.</li><li>Insurance experts said the back-to-back hurricanes could signal rising insurance rates nationwide.</li></ul>Two back-to-back hurricanes in Florida in recent weeks will likely raise <a target="_blank" href="https://www.businessinsider.com/florida-real-estate-worth-it-home-prices-insurance-hurricane-helene-2024-10">home insurance rates</a> even higher in a state that is already grappling with prices nearly <a target="_blank" href="https://www.cnn.com/2023/06/01/business/florida-homeowner-insurance-rates/index.html">four times</a> the national average, insurance experts told Business Insider."Florida represents an <a target="_blank" href="https://www.businessinsider.com/hurricane-milton-category-four-storm-real-estate-market-insurance-damages-2024-10">outsize amount of risk</a> compared to other areas of the world," Kyle Ulrich, president and CEO of the Florida Association of Insurance Agents, told BI. "And we pay commensurately for it."But it's not just Florida.The compounding financial crises of <a target="_blank" href="https://www.businessinsider.com/hurricane-helene-milton-tampa-florida-desantis-clean-disaster-dangerous-2024-10">Hurricane Helene</a> and <a target="_blank" href="https://www.businessinsider.com/hurricane-milton-landfall-florida-housing-market-insurance-fema-2024-10">Hurricane Milton</a> could also point to looming hikes in insurance rates nationwide, the home insurance experts said. They pointed to the recent Florida storms as examples of the increasingly severe and frequent climate catastrophes wreaking havoc on the global insurance market.<h2 id="25940b76-9ef6-4385-94a3-eb8903a79169">Florida's battered home insurance market</h2>Home insurance rates are <a target="_blank" href="https://www.businessinsider.com/why-its-expensive-to-own-a-home-mortgage-insurance-interest2024-4">up across the board</a> in recent years due to a combination of natural disasters and inflation, according to a <a target="_blank" class="" href="https://insurify.com/homeowners-insurance/report/home-insurance-price-projections/">recent report</a> from insurance comparison shopping site Insurify. Between 2021 and 2023, overall home insurance costs rose nearly 20%, the report found.And, for mortgaged single-family residences specifically, the average monthly property insurance payment has increased 52% nationally since 2019, according to a 2024 <a target="_blank" class="" href="https://static.icemortgagetechnology.com/pdf/ICE_Mortgage-Monitor-Report-October-2024.pdf">mortgage report</a> from financial services company Intercontinental Exchange.That number is even higher in regions more at risk of environmental disasters. California has seen <a target="_blank" href="https://www.businessinsider.com/homeowners-california-florida-insurance-issues-natural-disasters-wildfires-hurricanes-2023-10">several top home insurance agencies</a> pull out or limit their business in the state amid a growing risk of destructive wildfires, while tornado-prone states such as Illinois and Arkansas have seen an uptick in premiums as cyclones become more frequent, <a target="_blank" class="" href="https://www.cbsnews.com/news/storms-homeowners-insurance-oklahoma-texas-tornado/">according to CBS News</a>."Certainly, areas that are chronically hit by storms, you're seeing either rates increase or insurers pull out completely," Jeffrey Schlegelmilch, a research scholar and director at Columbia Climate School's National Center for Disaster Preparedness, told Business Insider.But nowhere in the country is the <a target="_blank" href="https://www.businessinsider.com/florida-home-insurance-prices-premium-effect-from-hurricanes-2024-9">home insurance crisis</a> more acute than in Florida. The state has, in recent years, been battered by a wave of costly <a target="_blank" href="https://www.businessinsider.com/hurricane-ian-photos-videos-destruction-in-florida-2022-9">hurricanes</a>, seen an <a target="_blank" class="" href="https://www.businessinsider.com/why-are-people-moving-florida-home-prices-cost-of-living-2023-12#:~:text=Florida's%20population%20jumped%20by%201.9,growing%20state%20in%20the%20country.">influx of new residents</a>, and dealt with <a target="_blank" href="https://www.renaissanceins.com/blog/florida-personal-lines-crisis/">fraud</a> over the state's assignment-of-benefits loophole, said Oscar Miniet, regional executive vice president, Southeast for Renaissance, a nationwide network of independent insurance agencies.Miniet said the number of insurers willing to write policies in parts of the state most exposed to hurricanes is shrinking, primarily because the potential risk outweighs the possible financial reward. Meanwhile, those that have stuck around, he added, have implemented extremely tight underwriting practices, which leads to homeowners paying far more in premiums, especially in at-risk areas.Florida cities like Deltona, Jacksonville, and Cape Coral saw the average property insurance payment for mortgaged single-family residences skyrocket 90%, 86%, and 85%, respectively, since 2019, according to an analysis by financial services company Intercontinental Exchange.Tampa — which sustained severe <a target="_blank" href="https://www.businessinsider.com/hurricane-milton-flooding-damage-photos-2024-10#winds-of-up-to-120-mph-ripped-through-the-state-shredding-the-roof-of-tropicana-field-home-of-the-tampa-bay-rays-baseball-team-8">wind damage when Milton</a> landed near Sarasota on Wednesday evening and a <a target="_blank" class="" href="https://www.businessinsider.com/hurricane-helene-milton-tampa-florida-desantis-clean-disaster-dangerous-2024-10">deadly storm surge when Helene</a> touched down last month — has seen insurance payments go up 71% since 2019, Intercontinental Exchange found.And Helene and Milton are likely to make matters even worse for Florida homeowners, the insurance experts said.The majority of Helene's damage in the state was flooding-related, which isn't included in most home insurance policies. But Helene also caused wind damage and <a target="_blank" class="" href="https://www.businessinsider.com/florida-homeowner-milton-tearing-through-neighborhood-cant-sleep-2024-10">Hurricane Milton's gusts</a> were fierce enough to tear the roof off Tampa's Tropicana Field and spawn several tornadoes that tore through Central Florida. Unlike flooding, wind damage is typically covered by home insurance."That is clearly going to have an impact on premiums in the state, said Shahid Hamid, a finance professor at Florida International University and director of the school's Hurricane Research Center's Laboratory for Insurance, Financial and Economic Research. "They're going to go up quite significantly."<h2 id="66cc80ec-e36b-4d1c-9df6-0fbbad2a8fb5">Increased home insurance prices nationwide</h2>While Floridians will bear the brunt of Helene and Milton's insurance-related pains, homeowners across the country could also soon feel the pain in their pocketbook thanks to the recent storms and other climate disasters like them.Milton and Helene are one-time events, but storms like them can end up <a target="_blank" href="https://www.businessinsider.com/soaring-home-car-insurance-rates-hurting-americans-finances-us-economy-2023-11">impacting the larger insurance industry</a>, said Jeremy Porter, the head of climate implications research at climate risk evaluation company First Street."When insurance costs get increased, they get increased not only in the places where we're seeing the exposure but they get increased across the industry," he told Business Insider.Large insurance companies such as Allstate or State Farm typically take major losses after big storms and, as a result, need to find ways to make up for those loss payouts, Porter said."So you're going to end up seeing people in Kentucky and Idaho and other places that just aren't anywhere near this event that may see a spike, an increase in their insurance costs, just due to the company's overhead and the additional payouts that they're having to make given climate risk in other areas," Porter said.But the primary reason homeowners around the country could see their rates rise post-hurricane season is thanks to the global reinsurance market, three insurance experts said.The reinsurance market, with hubs in <a target="_blank" class="" href="https://www.businessinsider.com/lloyds-london-firms-face-billions-claims-baltimore-bridge-collapse-2024-3">London</a> and <a target="_blank" class="" href="https://www.abir.bm/why-bermuda/">Bermuda</a>, is where insurance companies can offload some of their risk to a reinsurance company — a kind of insurance company for insurance companies.An uptick in reinsurance rates in recent years has been a driving force behind climbing insurance rates nationwide, said Kyle Ulrich, president and CEO of the Florida Association of Insurance Agents.Reinsurance rates are determined by worldwide losses, and when prices increase, insurance companies pass financial responsibility to customers who end up paying higher premiums, Hamid said.Those increases are, in part, because of climate change. The global reinsurance market has to assess risk against catastrophic events around the globe, from hurricanes in Florida to tsunamis in Japan, Ulrich said.But as catastrophic climate events become more common worldwide, homeowners everywhere are bearing the risk."There used to be five storms a year. Now there are 30 storms a year. There used to be one strong one and nine weak ones. Now there are nine strong ones and one weak one," said Oscar Seikaly, CEO of NSI Insurance Group, one of the largest privately owned insurance firms in Florida. "So the <a target="_blank" href="https://www.businessinsider.com/hurricane-milton-helene-economy-gdp-damage-cost-rebuilding-florida-climate-2024-10">frequency and severity</a> have been the factors that set the reinsurance industry off guard and put them in panic mode a bit."With Hurricanes Helen and Milton shaping up to be massive loss events, reinsurers could be on the hook for paying out billions of dollars of claims, which would, in turn, shrink the reinsurance industry's capacity to supply capital when it comes time to renew contracts next year, thus driving up premiums in the primary market, Yanjun (Penny) Liao, an economist and fellow at nonprofit research institute Resources for the Future, said."Because primary insurers rely on reinsurance everywhere, this could happen even in places that are not hit," Liao added.

Back-to-back Florida hurricanes signal trouble for home insurance prices nationwide

It was already a hectic day when my <keyword id="19996817" type="General" weightage="20" keywordseo="insurance" source="keywords">insurance</keyword> broker left a frantic voicemail telling me that my homeowner's insurance had lapsed. I felt nauseous and naked. Suddenly, any leak, fire, or tree branch falling onto the hundred-year-old Hudson Valley house that's been in my family for nearly 40 years could <a target="_blank" class="" href="https://www.businessinsider.com/stock-market-meltdown-rebound-fed-japan-interest-rate-decision-emergency-2024-8">wipe out</a> my bank account. I spiraled in shame. How did I let this happen? Did I forget to update a <a target="_blank" class="" href="https://www.businessinsider.com/credit-card-rewards-points-friends-fights-brunch-money-payment-venmo-2024-7">credit card</a>? Did I miss a bill? Did I do something wrong with the policy? But when I checked my records, even the <keyword id="20508386" type="General" weightage="20" keywordseo="Travelers" source="keywords" meta.keywordsubtype="org" meta.entityname="Travelers" meta.hostid="261" meta.entityid="Travelers">Travelers</keyword> website, there was nothing. A few hours later, my panic turned to bewilderment. When I finally reached my insurance broker, he told me the reason Travelers revoked my policy: AI-powered aerial <keyword id="19942081" type="General" weightage="20" keywordseo="surveillance" source="keywords">surveillance</keyword>. My finances were imperiled, it seemed, by a bad piece of code. I take privacy and surveillance extremely seriously — so seriously that I started one of the leading <a target="_blank" class="" href="https://www.stopspying.org/">think tanks</a> on the topic, the Surveillance Technology Oversight Project. But while I study <a target="_blank" class="" href="https://www.businessinsider.com/amazon-walmart-warehouse-surveillance-employees-oxfam-report-2024-4">surveillance</a> threats around the country for a living, I had no idea that my own insurance company was using my premium dollars to spy on me. Travelers not only uses <a target="_blank" href="https://www.travelers.com/about-travelers/technology-analytics/data-driven-and-powered-by-ai">aerial photography and AI</a> to monitor its customers' roofs, but also <a target="_blank" href="https://ppubs.uspto.gov/dirsearch-public/print/downloadPdf/20240005470">wrote patents on the technology</a> — nearly 50 patents actually. And it may not be the only insurer spying from the skies. This didn't just feel creepy and invasive — it felt wrong. Literally wrong: There was nothing wrong with my <keyword id="20715650" type="General" weightage="20" keywordseo="roof" source="keywords">roof</keyword>. I'm a lazy homeowner. I hate gardening, and I don't clean as often as I should. But I still take care of the essentials. Whether it's upgrading the electrical or installing a new HVAC, I try to make sure my home is safe. But to Travelers' <keyword id="19899640" type="General" weightage="20" keywordseo="AI" source="keywords">AI</keyword>, it appeared, my laziness was too big a risk to insure. Its algorithm didn't detect an issue with the foundation or a concern with a leaky pipe. Instead, as my broker revealed, the ominous threat that canceled my insurance was nothing more than moss. Where there's moisture, there's moss, and if you leave a huge amount of it on a roof for a protracted period, it can undermine the roof's lifespan. A small amount is largely harmless. Still, treating it couldn't be simpler. Sure, I could have knocked out the moss sooner, but life was busy, and so it kept falling (and growing) between the cracks. Finally, in June, weeks before I knew my roof was being surveilled, I went to the hardware store, spent 80 bucks on moss killer, hooked the white bottle of chemicals up to the garden hose, and sprayed it on the roof. The whole thing took about five minutes. A few days later, much to my relief, the moss was dying. I thought it was the end of an entirely unmemorable story. Who knows. Maybe if I'd done that a month sooner, Travelers' technology never would have flagged me, never would've said I was an insurance risk. But one of the deep frustrations of the AI-surveillance age is that as companies and governments track ever more of our lives in ever more detail, we rarely know we're being watched. At least not until it's too late to change their minds. While there's no way to know exactly how many other Travelers customers have been targeted by the company's surveillance program, I'm certainly not the first. In February, Boston's ABC affiliate reported on a customer who was threatened with nonrenewal if she didn't replace her roof. The roof was well within its life expectancy, and the customer hadn't encountered any issues with leaks; still, she was told that without a roof replacement she wouldn't be insured. She said she faced a $30,000 bill to replace a slate roof that experts estimated could have lasted another 70 years. Insurers have every incentive to be overly cautious in how they build their AI models. No one can use AI to know the future; you're training the technology to make guesses based on changes in roof color and grainy aerial images. But even the best AI models will get a lot of predictions wrong, especially at scale and particularly where you're trying to make guesses about the future of radically different roof designs across countless buildings in various environments. For the insurance companies designing the algorithms, that means a lot of questions about when to put a thumb on the scale in favor of, or against, the homeowner. And insurance companies will have huge incentives to choose against the <a target="_blank" class="" href="https://www.businessinsider.com/why-are-new-homes-ugly-construction-builders-design-materials-architecture-2024-7">homeowner</a> every time. Think about it: Every time the <a target="_blank" class="" href="https://www.businessinsider.com/ai-quietly-picking-your-pocket-with-personalized-pricing-2024-7">AI gives the green light</a> to a roof that actually has something wrong, the insurance company picks up the bill. Each time that happens, the company can add that data point to its model and train it to be even more risk-averse. But when homeowners are threatened with cancellation, they pick up the bill for repairs, even if repairs are unnecessary. If the Boston homeowner throws out a slate roof with 70 years of life left in it, the insurance company never knows it was wrong to remove it. It never updates the model to be less aggressive for similar homes. Over time, insurance companies will have every incentive to make the models more and more unforgiving, threatening more Americans with loss of coverage and potentially driving millions or billions of dollars' worth of unnecessary home repairs. And as insurers face increasing losses due to the climate crisis and inflation, the pressure to push unnecessary preventive repairs on customers will only rise. A confusing coda to this whole ordeal was what Travelers said when I reached out with a detailed list of fact-checking questions and a request for an interview. In response, a spokesperson sent a terse denial: "Artificial intelligence analysis/modeling and drone surveillance are not a part of our underwriting decision process. When available, our underwriters may reference high-resolution aerial imagery as part of a holistic review of property conditions." How did this make sense given what was written on Travelers' own website and patent applications? Then the precision and slipperiness of the language started to stand out. What exactly counts as the "underwriting decision process"? When Travelers boasts online that its workers "rely on algorithms and aerial imagery to identify a roof's shape — typically a time-consuming process for customers — with close to 90% accuracy," does that classification not count as the underwriting process? And even though Travelers has flown <a target="_blank" href="https://www.aloft.ai/wp-content/uploads/2021/05/Travelers-case-study-updated-5.14.21.pdf">tens of thousands of drone flights</a>, are those not part of underwriting? And if AI and drones aren't actually affecting customers, why file so many patent applications like "<a target="_blank" href="https://ppubs.uspto.gov/dirsearch-public/print/downloadPdf/20240005470">Systems and Methods for Artificial Intelligence (AI) Roof Deterioration Analysis</a>"? It felt like the company was trying to have it both ways, boasting about using the latest and greatest tech while avoiding accountability for errors. When I brought these follow-up questions to the company, Travelers did not respond. Thankfully, my own roof isn't going anywhere, at least not for now. A few hours after my panicked ordeal with Travelers began and I started to scramble to find new coverage, the situation resolved. Travelers admitted that it screwed up. It never conceded that its AI was wrong to tag me. But it revealed the reason I couldn't find my cancellation notice: The company never sent it. Travelers may have invested huge sums in neural networks and drones, but it apparently never updated its billing software to reliably handle the basics. Without a nonrenewal notice, it couldn't legally cancel coverage. Bad cutting edge tech screwed me over; bad basic software bailed me out. Part of what is so disturbing about the whole episode is how opaque it was. When Travelers took aerial footage of my house, I never knew. When it decided I was too much of a risk, I had no way of knowing why or how. As more and more companies use more and more opaque forms of AI to decide the course of our lives, we're all at risk. AI may give companies a quick way to save some money, but when these systems use our data to make decisions about our lives, we're the ones who bear the risk. Maddening as dealing with a human insurance agent is, it's clear that AI and surveillance are not the right replacements. And unless lawmakers take action, the situation will only get worse. The reason I still have insurance is simple consumer-protection laws. New York state won't allow Travelers to revoke my insurance without notice. But why do we let companies like Travelers use AI on us in the first place without any protections? A century ago, lawmakers saw the need to regulate the insurance market and make policies more transparent, but now updated laws are needed to protect us from the AI trying to decide our fates. If not, the future looks unsettling. Insurance is one of the few things that protect us from the risks of modern life. Without AI safeguards, the algorithms will take what little peace of mind our policies give us. Correction: August 9, 2024 — A previous version of this story cited a Travelers broker who said the company flew a drone over the author's house. After the story was published, Travelers clarified that any "high-resolution aerial imagery" it used did not come from a drone. <a target="_blank" href="https://www.businessinsider.com/author/albert-fox-cahn">Albert Fox Cahn</a> is the founder and executive director of the Surveillance Technology Oversight Project, or STOP, a New York-based civil-rights and privacy group.

My insurance company spied on my house from the sky. Then the real nightmare began.

<ul class="summary-list"><li>The condo market looks stuck in Florida and Texas, according to Redfin.</li><li>Condo inventory rose 53% in Florida and 42% in Texas since last year.</li></ul>Housing inventory is piling up in Florida and Texas, in part because homeowners association fees and home insurance costs are scaring away buyers from the condo market, according to Redfin.<a target="_blank" class="" href="https://www.redfin.com/news/condo-supply-rises-florida-texas-2024/">The real estate listings site said</a> the number of available condos had soared in key metros in the two states over the past year, one symptom in an overarching trend of <a target="_blank" class="" href="https://www.businessinsider.com/florida-housing-market-outlook-nightmare-home-prices-mortgage-rates-affordability-2024-7">homebuyers getting cold feet</a> amid high prices and rising costs associated with owning a home. Condo inventory soared 53% year-over-year in Florida in July, per Redfin data, while condo inventory climbed 42% in Texas in the same timeframe. Those increases far exceed the national average, with condo inventory rising 27% nationally in July.Jacksonville, Florida, saw the steepest climb in inventory, with the supply of condos soaring 81% from levels last year. That was followed by Orlando, Florida, and Fort Worth, Texas, where condo supply soared 68% and 65%, respectively, over the last year.Condo buyers have been put off by rising HOA fees and insurance premiums in both states, Redfin said. <a target="_blank" class="" href="https://www.redfin.com/news/hoa-fees-surge-florida-2024/">HOA fees have climbed more than 15% from levels last year</a> in key Florida metros, Redfin found in a previous analysis.Meanwhile, natural disasters in the two states have pushed up insurance premiums. <a target="_blank" href="https://www.businessinsider.com/real-estate-prices-drop-florida-texas-violent-weather-insurance-costs-2024-8">Property insurance costs</a> in Texas and Florida have grown at the fastest pace in 20 years, a Capital Economics report found."The condo market isn't moving," Steven Weiss, a Redfin agent based in Tampa, said in a statement. "It's much more difficult to sell a condo. Buyers are aware we're at somewhat of a tipping point for condos, and that their value may continue to decline as HOA fees rise and people grow more wary of buying in a waterfront building," he added.Condo prices haven't seen a significant decline yet, with the price of condos in Jacksonville and Orlando seeing a mild, single-digit fall over the past year. In some metros, like Fort Worth, prices have actually increased.It's a different story for <a target="_blank" href="https://www.businessinsider.com/falling-home-price-locations-us-housing-market-supply-florida-texas-2024-4">house prices though, which have been pushed lower</a> in both states as supply starts to outweigh demand. More than <a target="_blank" class="" href="https://www.businessinsider.com/falling-home-price-cities-locations-where-housing-market-getting-cheaper-2024-6#:~:text=Four%20major%20US%20metros%20are,both%20with%20a%201.2%25%20drop.">6% of homes nationwide</a> are now seeing price declines, Redfin said in a June report, the fastest pace of price-cuts since 2022

Housing supply is piling up in Florida and Texas as HOA and insurance fees jump, Redfin says

<ul class="summary-list"><li>Climate change is increasing the severity of natural disasters — and home insurance prices.</li><li>For those moving to a climate-risk state, there are some steps you can take to protect your home.</li></ul>Finding an affordable home in a red-hot real estate market is already a tremendous feat.And now, in addition to rapidly rising prices, home buyers are increasingly worried about another factor: climate change.According to Zillow, more than 80% of home buyers considered climate risks — including flood, wildfire, and hurricane — when shopping for a house.In particular, climate change complicates the homebuying process by sending <a target="_blank" href="https://www.businessinsider.com/climate-change-homeowners-insurance-premium-costs-crisis-skyrocketing-states-hurricanes-2024-10">home insurance premiums skyrocketing</a>. As storms and other natural disasters become more destructive, home insurance providers are raising rates or pulling out of certain states altogether, according to insurance company Insurify.According to Holden Lewis, a home insurance expert at NerdWallet, climate change is hitting states such as California, Florida, North Carolina, Tennessee, Virginia, Texas, Oklahoma, Kansas, and Nebraska the hardest — and wildly disrupting these states' home insurance markets.If you're looking to purchase a house in these high-risk markets, here's what you need to know about rapidly rising home insurance rates.<h2 id="4ca151ec-b6df-44db-821b-3b925503bc08">How to navigate the insurance landscape when moving</h2>As climate change exacerbates the frequency and severity of natural disasters, homes are at higher risk of damage. Insurance companies in turn are raising prices to cover the higher costs of covering claims and reinsurance, or insurance for insurance companies.According to financial data firm Bankrate, the national average cost of home insurance is $2,285 a year for up to $300,000 of dwelling coverage. But in high climate-risk states such as Nebraska, Florida, and Oklahoma, average annual premiums range from $4,835 to $5,655.It might seem obvious, one step homebuyers can take to avoid surprises is consider home insurance costs early in the homebuying process, Lewis said. As insurance premiums increase, they can materially impact your monthly housing payments and push a home out of your affordability zone.Prospective buyers shopping for homes in a new state are especially prone to insurance sticker shock, according to Lewis. For example, if you're thinking of moving from Ohio to Texas, you might not be aware that the average homeowners insurance rate in cyclone-prone Texas is $3,916 a year — $2,600 more than in Ohio, Lewis pointed out.Still, climate-risk states remain popular. According to <a target="_blank" href="https://www.uhaul.com/Articles/About/U-Haul-Announces-Top-Growth-States-Of-2023-30660/">U-Haul</a>, Texas and Florida received the highest influx of new residents in 2023.Many of these newcomers might not have done their homework on the home insurance market before moving to the state, according to Stephanie L., homeowner and lifelong Florida resident who asked not to use her full last name for privacy reasons.There's a lack of consumer awareness of the financial risk extreme weather brings, in Stephanie's opinion. "If you purchase a beautiful home on a river, you have to understand that with the way storms come in, you could be at risk," Stephanie told Business Insider in an interview.Even within climate-risk states, you can minimize your home's exposure to extreme weather and bring down insurance premiums by researching the local neighborhood.When Stephanie bought her house, she picked a location in the Jacksonville metropolitan area, which has less exposure to hurricane risk than other areas of the Sunshine state."We definitely looked for high and dry, not in a flood zone, and not in a hurricane evacuation zone," Stephanie said.Indeed, Jacksonville home insurance premiums are significantly lower than Florida's state average of $5,527, with homeowners paying an average of $2,705 a year for insurance according to Bankrate.Next, when it comes by a natural disaster, you want to ensure that the insurance policy can fully cover rebuilding costs. Many policies offer dwelling coverage limits in line with the market value of the house, but that's not always sufficient coverage, according to Lewis."The market value of the house the day before a fire or storm might be less than the actual cost to rebuild it to current building codes," Lewis said.For prospective homebuyers, Lewis recommends clarifying the dwelling coverage limit with the insurance agent and shopping around for available policies.Also important to note is that flood coverage often isn't included in standard homeowners insurance policies. This is an important consideration if you're looking to buy a house in an area prone to hurricanes."If water is rising, say from a river, or storm surge, then a standard homeowners policy will not cover that damage," Lewis said.Stephanie purchased flood insurance in addition to her regular homeowners insurance when she purchased a home."I also have a separate flood policy even though I'm not in a floodplain," she said. "When you're not in a flood zone, flood insurance is pretty affordable."Although Stephanie isn't at high risk for flooding, she still wants to be prepared for the worst. It's not a bad idea to go the extra mile and purchase extra insurance when it comes to buying a home in Florida, even if you're not directly in a flood zone.In addition to hurricane-prone Gulf Coast states, regions like western North Carolina, eastern Tennessee, and southern Virginia are flooding hotspots, according to Lewis.Lastly, homeowners also should consider how inflation will drive up home insurance costs, especially as concerns over inflation loom high in today's economy. An inflationary environment will increase the cost of building materials and construction, Lewis pointed out.As a result, it may be a good idea to review your coverage every year or two to evaluate the status of your coverage, Lewis said."Talk to the agent, maybe even talk to a general contractor just to find out, 'Hey, am I still covered? Do I still have enough coverage to pay to rebuild this home?'" Lewis suggested.For those considering buying a home in a state with high levels of climate risk, taking these precautions during the homebuying process can help you protect your investment.

Buying a home in one of these 9 climate-risk states? Here's how to deal with spiking home insurance rates from someone who lives in one

<ul class="summary-list"><li>A Florida homeowner and landlord is prepping for another hurricane after Helene.</li><li>Kevin Stuteville said he's already faced $1.5 million in losses and expects more.</li></ul>Kevin Stuteville, 45, is prepping his St. Pete Beach, Florida, home for a second hurricane, Milton, after <a target="_blank" class="" href="https://www.businessinsider.com/florida-real-estate-worth-it-home-prices-insurance-hurricane-helene-2024-10">Helene wreaked havoc just days before</a>.He put armor screens on the windows, half of the drywall has already been removed, and he's taken his dehumidifiers and fans out of the house so they don't get damaged in case he has to use them again."The contents of our entire home are still in my front yard," Stuteville told Business Insider. "I am on open water, and in 24 to 48 hours, my couch might be 10 miles away."<div type="image" title="The contents of a home in front of the property." height="378" width="640" msid="114100404" hostid="261" sizebytes="36270"></div>St. Pete Beach is a barrier island about nine miles from downtown St. Petersburg. According to FEMA, <a target="_blank" class="" href="https://www.stpetebeach.org/173/Federal-Emergency-Management-Agency-FEMA">the entire city of St. Pete Beach is a within a flood zone</a>. Stuteville expects the worst for his home, but he also has about six other properties in the St. Petersburg and Tampa area to worry about.For him and other landlords in southwest Florida who've had their investment and rental properties damaged, there are two grim options: try to rebuild or sell and let somebody else do it.<h2 id="2d89986c-980a-4558-83f9-b14d843bdc78">Helene already caused damages for Stuteville</h2>Stuteville is the founder of <a target="_blank" class="" href="https://www.effectiveagents.com/hurricane">Effective Agents</a>, a real-estate platform that helps people find realtors to help buy or sell properties. He also has six properties of his own — all with tenants."I have a tenant in particular who owns a clothing boutique," he said. "I was just there, and they're boarding up and doing all that they can.""I'd say two-thirds of them are in flood areas," he added. Stuteville said he's self-insured for all of his properties and on the hook for damages. <a target="_blank" class="" href="https://www.businessinsider.com/florida-home-insurance-prices-premium-effect-from-hurricanes-2024-9">The high costs of home and flood insurance</a> plus the lengthy process to recover damages was not worth it to him — and up until now, that worked out for him.<div type="image" title="The interior of a home with with drywall being taken out." height="480" width="640" msid="114100405" hostid="261" sizebytes="29340"></div>"The upside to self-insuring is that you don't have to screw with any of that — I haven't held insurance since the 2004 hurricanes," he said. "That's been 20 years I've been self-insured. I'm in the hole now because of this storm, but it's not as bad as I think it could have been. I'll be all right."<a target="_blank" class="" href="https://consumerfed.org/reports/exposed-a-report-on-1-6-trillion-dollars-of-uninsured-american-homes/">According to a report from the Consumer Federation of America</a>, 10% of Florida homeowners are uninsured — ranking ninth in the country.Stuteville estimates that <a target="_blank" class="" href="https://www.businessinsider.com/analysts-estimate-up-to-34-billion-damage-from-hurricane-helene-2024-10">he's lost about $1.5 million</a> from Helene and could lose another $1 million after Milton hits. Data firm CoreLogic estimated Hurricane Helene caused $30.5 billion to $47.5 billion in wind and flood damage across 16 states."We're just getting hit from all angles," he said. "The damages we take are going to deplete savings. It's just a bad couple of weeks. There's no way to prepare for something like this. You just take it one day at a time and that's it."<h2 id="c222d9b5-fff1-4375-a4a0-ca21053ec8de">Stuteville is staying put in St. Pete Beach</h2>Stuteville said that there are two paths for landlords going forward."You have to have a real serious kind of conversation with yourself about whether or not it's worth it to remodel," he said."You have to make a decision," he added. "Are you going to sell that property off and let someone else build and do it?"<div type="image" title="The backyard of a home close to the water in Florida." height="480" width="640" msid="114100406" hostid="261" sizebytes="56934"></div>For those who decide to rebuild or make repairs, Stuteville said that the equity in the property might be enough to take out a mortgage or line of credit to remodel if you're lucky. For those wanting to wash their hands of a home, you're probably going to take a loss, but it might not be that bad."I think people who are selling are going to have a loss that'll be somewhat dampened by the runup from COVID," he said. "Just their land value is substantial enough to diminish some of the losses that they would have."Stuteville anticipates property rehabbers and home flippers might buy and try their luck at homes damaged in the hurricane.For now, Stuteville is not selling — <a target="_blank" class="" href="https://www.businessinsider.com/hurricane-milton-tampa-mayor-castor-evacuation-orders-die-warning-helene-2024-10">and he's staying</a>. Stuteville, his wife, and his children are staying in a hotel in downtown St. Petersburg. That way, he can quickly gain access to damaged homes and buildings and make repairs as fast as he can."I'm not evacuating out of St. Petersburg — I just can't," he said. "I've got to stay somewhat close so I can take care of any issues that come up with our properties and people. I have employees here that are all evacuating and we've had to basically shut down the business because people can't work and be on the road up to Alabama or Jacksonville trying to get out of town."Are you a landlord with properties affected by Hurricane Helene or Milton, and are open to sharing your story? We want to hear from you. Reach out to reporter Jordan Pandy, at <a target="_blank" href="mailto:jpandy@businessinsider.com">jpandy@businessinsider.com</a>, with your story.

A self-insured landlord in Hurricane Milton's path is still recovering after Helene but isn't evacuating to stay nearby and help his properties

<ul class="summary-list"><li>Shanna Nasiri, 34, decided to leave her tech job when she no longer felt aligned with the work.</li><li>Earlier this year, she opened a natural wine bar in Williamsburg called With Others.</li></ul>This as-told-to essay is based on a conversation with Shanna Nasiri, the 34-year-old owner of <a target="_blank" class="" href="https://www.withothersbrooklyn.com/?fbclid=PAZXh0bgNhZW0CMTEAAaYikrw0VpjpCpAQ0ZvjvLvpFSaoADEXEYZSPsfVYegg3r5FJj2KHjPZ-Cs_aem_1Utqp3zKNtwMvha7MZMTkA">With Others</a>, a natural wine bar in Brooklyn, New York. It has been edited for length and clarity. Business Insider has verified Nasiri's salary.I grew up in the <a target="_blank" class="" href="https://www.businessinsider.com/moved-san-francisco-worth-it-cost-of-living-negativity-2024-2">Bay Area</a> near Silicon Valley, and everyone I knew was in some variation of tech. I continued on that trajectory.My first job was working for the corporate ventures team at Qualcomm. After that, I worked in semiconductors for a few years. Then, I went back to business school and got a job in product marketing for a regulatory technology startup.I liked aspects of what I was doing. The <a target="_blank" class="" href="https://www.businessinsider.com/big-tech-workers-pushed-limits-of-perks-benefits-pampering-over-2024-10">perks</a> were nice. I had full benefits. And there <a target="_blank" class="" href="https://www.businessinsider.com/left-big-tech-job-uber-entrepreneur-2024-10">was the salary</a>. I was making around $200,000 at the time I left, plus a bonus. I also got a lot of stock options.I was working for <a target="_blank" class="" href="https://www.businessinsider.com/startups-to-bet-your-career-on-in-2024-2024-2">startup companies</a>, so I had the chance to be at the ground level, build teams, and craft messaging. I felt like I had an impact.But I wasn't creatively fulfilled. I didn't like what I was doing. It didn't resonate with who I am. I was kind of embarrassed to tell people I did product marketing for regulatory technology startups. I felt like I was speaking a different language.At the time, I compartmentalized. This is who I am at work, and this is who I am in my personal life. I just accepted my life for what it was and figured you could <a target="_blank" class="" href="https://www.businessinsider.com/happiness-at-work-employee-engagement-fulfillment-flexibility-four-days-2023-12">never be fully happy at work.</a><h2 id="ddbf58b0-8e32-403f-9d1f-46fdacdaa027">That started to change when I turned 30</h2>Around my 30th birthday, I started having these existential questions and ideas. I had recently moved from San Francisco to New York City. That was also right at the start of COVID, so I had a lot of <a target="_blank" class="" href="https://www.businessinsider.com/how-the-pandemic-changed-my-career-2-years-stories-2022-3">alone time to reflect.</a>I was seeing this whole new world in <a target="_blank" class="" href="https://www.businessinsider.com/san-francisco-new-york-london-tech-where-to-live-2024-8">New York City</a>, with so many diverse careers. In San Francisco, I knew a lot of tech founders. But when I moved to New York, I started to see that entrepreneurship could have a greater meaning beyond tech.<div type="image" title="A photo of Shanna Nasiri holding a bottle of wine next to a photo of Williamsburg" height="1500" width="3000" msid="115114938" hostid="261" sizebytes="438074"></div>I had always fantasized about opening a space, but it wasn't something I thought I would actually do.I moved to <a target="_blank" class="" href="https://www.businessinsider.com/photos-show-what-its-like-to-live-in-williamsburg-brooklyn-2021-5">Williamsburg in 2021</a>. It was still pretty desolate at the time. There were lots of empty storefronts. I would go on these long walks and start fantasizing about what I would do with the space.I've always been passionate about hosting. I love to curate an environment. I'm obsessed with the little details like glassware, music, lighting, and sparkling water choice. I grew up in a family where my mom and grandma would host huge parties all the time and I was the mini host. I'm Middle Eastern and I think there is a sense of Middle Eastern hospitality that's embedded within me.My <a target="_blank" class="" href="https://www.businessinsider.com/guides/kitchen/types-of-wine">wine journey</a> started young. My stepdad collected limited-production Pinot Noirs. He introduced me to wine and taught me how to taste and the artisanship that goes into production.When I think about it now, it was pretty brazen to start a wine bar. But it was COVID, and <a target="_blank" class="" href="https://www.businessinsider.com/how-people-changed-careers-jobs-during-pandemic-2022-3">life felt so short and precious</a>. I wanted to prove to myself I could do itIt was either get stuck in this unfulfilling career trajectory and <a target="_blank" class="" href="https://www.businessinsider.com/careerist-corporate-ladder-decline-promotions-work-ethic-american-dream-2024-10">climb the corporate ladder</a>, or try to be an entrepreneur. It was a huge leap of faith and required me to believe in myself 100%So, in the summer of 2022, I got a job at a wine bar in Brooklyn to see what it was like. I was so passionate about it.After that, I started pursuing my wine education and got my Wine and Spirit Education Trust certification, which is a globally recognized qualification. I got a job at a wine shop. And I fully committed to opening my own bar.<h2 id="49faa484-70c2-47b4-9558-670c2708ed17">My tech experience came in handy</h2>A lot of my past work was helpful as I was building the bar. I knew how to manage teams. I had always worked at the ground level, so I had experience juggling a lot of responsibilities and working with limited resources.I started asking everyone to introduce me to other entrepreneurs and asking about their contractors, their agents, and their plumbers.<div type="image" title="A photo of Shanna Nasiri posing at her wine bar next to a photo of Williamsburg" height="1500" width="3000" msid="115114935" hostid="261" sizebytes="153358"></div>I used my own money and opened the bar on a very small budget.It took me a year to find the space because I was only looking for places within a few blocks of my home. I wanted it to be really integrated with the community. I found the space in June 2023 and started construction in October 2023.We opened in March of this year. It's been incredible. It's beyond anything I could have ever imagined.It has quickly become the neighborhood spot. We have regulars that come in twice a week. And the coolest thing has started happening recently, where I have probably met 11 or 12 parents of our regulars.I've continually reinvested in the bar. For example, the backyard buildout happened three months after we opened. After that, I built out the basement and cellar. Then I invested in hiring a general manager and growing out the wine list.<h2 id="ac1863d1-953a-4300-b4ce-24a04c6e730e">It's been a major lifestyle change from tech</h2>I don't have health insurance. I'm working probably 12-hour days. There's just so much stuff to do in terms of maintenance. And I work service every single night.In tech, I could work from anywhere. I traveled a lot and <a target="_blank" class="" href="https://www.businessinsider.com/working-remotely-feel-isolated-from-coworkers-quit-2024-7">worked remotely</a>. Now, I have a physical space. I haven't left a 20-mile radius since Christmas and have no plans to.But I feel so aligned with what I'm doing. It feels like what I was always meant to be doing. I work way more hours than I did in tech, but it doesn't feel as hard.I'm in such awe of what we've been able to create in such a short amount of time.

I left my $195,000 tech job to open a wine bar. I work 12-hour days and don't have health insurance, but I've never been happier.

<ul class="summary-list"><li>This post originally appeared in the Insider Today newsletter.</li></ul>Almost Friday! The complicated relationship between professional sports and legal gambling just took another twist. The NBA issued <a target="_blank" href="https://www.businessinsider.com/toronto-raptors-player-jontay-porter-banned-over-gambling-violations-2024-4">a lifetime ban to Jontay Porter</a> for leaking info to known sports bettors. But it might <a target="_blank" href="https://www.businessinsider.com/nba-ban-jontay-porter-toronto-raptors-easy-call-why-2024-4">ultimately be a good thing for the NBA</a>.In today's big story, we're looking at one person's argument for <a target="_blank" href="https://www.businessinsider.com/new-rule-of-home-buying-fire-your-real-estate-agent-2024-4">why you don't need a real-estate agent</a> when buying a home.What's on deck:<ul><li>Markets: A recession is being held off thanks to three key reasons, <a target="_blank" href="https://www.businessinsider.com/recession-3-reasons-us-hasnt-seen-a-downturn-david-rosenberg-2024-4">according to one economist</a>.</li><li>Tech: Searching for something on Google might lead you to Reddit. <a target="_blank" href="https://www.businessinsider.com/why-reddit-is-taking-over-google-right-now-2024-4">Here's why</a>.</li><li>Business: Prince Harry and Meghan Markle have been <a target="_blank" href="https://www.businessinsider.com/meghan-markle-prince-harry-new-netflix-shows-suits-spotify-deal-2024-4">royally bad for business</a>.</li></ul>But first, no agent, no problem.If this was forwarded to you, <a target="_blank" href="https://www.businessinsider.com/subscription/newsletter/insider-today">sign up here.</a><h3>The big story</h3><h2>DIY homebuying</h2><div type="image" title="person holding a house and keys" height="960" width="1920" msid="109408859" hostid="261" sizebytes="227608"></div>Buying a house is the biggest purchase most people make, so it makes sense to hire an expert to help with the process.So, about that…One recent homebuyer's brief experience working with a real-estate agent left him <a target="_blank" href="https://www.businessinsider.com/new-rule-of-home-buying-fire-your-real-estate-agent-2024-4">feeling way better off doing it himself</a>. And he doesn't see why everyone else can't do the same."If you're thinking about buying a home, ask yourself the following three questions: Do you have an internet connection? Do you have at least a seventh-grade reading level? Do you like saving money? If you answer yes to all three, you're in fantastic shape to be your own agent," writes Albert Fox Cahn.Albert details how much of what his real-estate agent told him was what he'd already figured out. Most of the listings his agent "found" were homes Albert had already seen online, sometimes weeks earlier. The agent also tried to push him into a bidding war that got uncomfortably high.He eventually found a place without a real-estate agent. Better yet: he saved $50,000 since the seller had baked his agent's commission into the price.<div type="image" title="home alarm" height="1500" width="2000" msid="109408861" hostid="261" sizebytes="91900"></div>Now, before you fire up the hate mail, I understand Albert's experience isn't representative of all real-estate agents.But there's a legitimate case for more people to follow in Albert's footsteps. That's thanks to a recent settlement focused on agent commissions.In short, buyers and sellers could be responsible for paying their agents separately. Previously, sellers typically paid out both agents with a chunk of the final sale price, usually around 5-6%.(Business Insider's James Rodriquez has done a fantastic job covering this whole saga, including <a target="_blank" href="https://www.businessinsider.com/national-association-realtors-lawsuit-settlement-housing-market-homebuying-agents-commissions-2024-3">how the settlement could upend the future of homebuying</a>.)So, with real estate where it is — <a target="_blank" href="https://www.businessinsider.com/housing-market-mistake-buyers-sellers-mortgage-rates-time-to-buy-2024-3">expensive and mind-numbingly frustrating</a> — you could see why buyers might be willing to cut ties with agents to save some cash.It all speaks to a broader DIY debate that plays out in industries. Take personal finance. Financial advisors are a market worth trillions of dollars. Yet some say you're better off avoiding advisors and their fees and sticking your money in low-fee index funds.Sometimes, though, people are willing to "pay for peace."Airbnb upended the hotel industry when it entered the scene. Why pay for a pricey, small hotel room when you could rent an entire house or apartment, often at a lower price?But it wasn't long before <a target="_blank" href="https://www.businessinsider.com/airbnb-taking-action-annoying-checkout-chores-cleaning-rating-2023-5">annoying checkout chores</a> and <a target="_blank" href="https://www.businessinsider.com/airbnb-cleaning-fees-added-total-price-search-results-after-complaints-2022-11">exorbitant fees</a> sent some people <a target="_blank" href="https://www.businessinsider.com/new-york-nyc-airbnb-ban-travelers-better-off-hospitality-experts-2023-11">running back to hotels</a>.<h2>3 things in markets</h2><div type="image" title="red arrow pointing down on a graph" height="1000" width="2000" msid="109408863" hostid="261" sizebytes="386578"></div><ol><li>What's holding off a recession? Economist David Rosenberg, who has a pessimistic view on the market's future, <a target="_blank" href="https://www.businessinsider.com/recession-3-reasons-us-hasnt-seen-a-downturn-david-rosenberg-2024-4">has some ideas for what's stopping a downturn</a>. Government spending has boosted manufacturing facility construction and debt was refinanced when rates were still historically low.</li><li>Seth Klarman sounds off. The billionaire founder of the hedge fund Baupost shared his perspective on the impact of AI on society <a target="_blank" href="https://www.businessinsider.com/seth-klarman-baupost-investment-views-ai-real-estate-private-markets-2024-4">while speaking at a Harvard Business School event</a>. He also sees credit and real-estate opportunities due to interest-rate increases and pandemic knock-on effects.</li><li>The US freight recession seems to be getting worse. Shares in J.B. Hunt, which is seen as a bellwether for the industry, tumbled 8% Wednesday after a <a target="_blank" href="https://www.businessinsider.com/jb-hunt-q1-earnings-miss-stock-price-freight-recession-outlook-2024-4">first-quarter earnings report that fell short of Wall Street's expectations</a>. The broader freight market has been toiling through an extensive slowdown since the pandemic years, driven by weak sales and an overload of trucks.</li></ol><h2>3 things in tech</h2><div type="image" title="Reddit icons overtaking a Google search page" height="1500" width="2000" msid="109408865" hostid="261" sizebytes="88766"></div><ol><li>Reddit is taking over Google Search results. If you've noticed way more Reddit posts when you search on Google, you're not alone: Google's shift to promoting more human sites has led to <a target="_blank" href="https://www.businessinsider.com/why-reddit-is-taking-over-google-right-now-2024-4">a surge in traffic to Reddit</a>. The change, however, is already being exploited by spammers.</li><li>TikTok Shop is better at keeping customers than Temu and Shein. You might be annoyed by all those TikTok Shop videos on your feed, but it appears they're working. New data shows <a target="_blank" href="https://www.businessinsider.com/tiktok-shop-better-at-keeping-customers-than-temu-shein-2024-4">TikTok outpaced its rivals regarding repeat purchases</a>, and was only beaten by Amazon.</li><li>More layoffs at Google. The tech giant is <a target="_blank" href="https://www.businessinsider.com/google-layoffs-more-employees-2024-4">cutting some jobs in its finance and real estate teams</a>, two current employees told BI. Some roles are also being relocated to other offices in the US and abroad where Google is putting more investment, including India, Dublin, and Atlanta.</li></ol><h2>3 things in business</h2><div type="image" title="Prince Harry and Meghan Markle divided by a ripped $100 bill with a downward trending line" height="600" width="1200" msid="109408867" hostid="261" sizebytes="60760"></div><ol><li>Harry and Meghan's mega-deals have been mega-busts. In the last four years, companies have thrown millions of dollars into Prince Harry and Meghan Markle's projects only to be met with mixed results. Sure, the couple is really famous — <a target="_blank" href="https://www.businessinsider.com/meghan-markle-prince-harry-new-netflix-shows-suits-spotify-deal-2024-4">but it's clear they're terrible at business.</a></li><li>Laid-off Tesla workers are starting to receive severance. Tesla appeared to be offering<a target="_blank" rel="noopener noreferrer" href="https://www.businessinsider.com/tesla-layoffs-severance-agreement-pay-benefits-details-2024-4"> two months' pay and health insurance</a>, five former workers told BI. However, CEO <a target="_blank" rel="noopener noreferrer" href="https://www.businessinsider.com/elon-musk-tesla-apologizes-severance-packagaes-layoffs-2024-4">Elon Musk has apologized</a> because some of the severance packages were "incorrectly low," per CNBC. Meanwhile, as the problems pile up at Tesla, perhaps Musk <a target="_blank" rel="noopener noreferrer" href="https://www.businessinsider.com/elon-musk-ceo-tesla-spacex-twitter-too-many-companies-2024-4">shouldn't have so many jobs</a>.</li><li>Tech giants are building new data centers — and you might end up paying for it. Amazon and Ohio's largest utility company have asked the state for a huge electricity discount as it ramps up its construction of data centers there. Consumer advocates and energy experts worry that <a target="_blank" href="https://www.businessinsider.com/data-centers-electricity-consumers-discounts-utilities-2024-4">home and business ratepayers may end up bearing the brunt</a> of the rise in costs.</li></ol><h2>In other news</h2><ul><li><a target="_blank" rel="noopener" href="https://www.businessinsider.com/microsoft-gpu-targets-1-8-million-ai-chips-this-year-2024-4">Microsoft has a target to amass 1.8 million AI chips by the end of the year, internal document shows</a>.</li><li><a target="_blank" rel="noopener" href="https://www.businessinsider.com/googlers-arrested-and-fired-israel-protest-project-nimbus-nyc-sunnyvale-2024-4">Google fired 28 employees for staging in-office protests against the company's contract with Israel</a>.</li><li><a target="_blank" href="https://www.businessinsider.com/rivian-layoffs-after-delaying-georgia-factory-r2-2024-4">Rivian lays off more workers</a>.</li><li><a target="_blank" href="https://www.businessinsider.com/google-ev-charging-stations-hotels-range-anxiety-2024-4">Google is trying to solve one of Americans' top concerns about having an EV</a>.</li><li><a target="_blank" href="https://www.businessinsider.com/why-tesla-wants-give-elon-musk-billion-pay-package-2024-4">Why Tesla wants to give Elon Musk a $55 billion pay package</a>.</li><li><a target="_blank" href="https://www.businessinsider.com/eli-lilly-zepbound-sleep-apnea-conditions-glp1-drugs-treat-l2024-4">Another perk of weight-loss drugs? Eli Lilly's Zepbound may alleviate sleep apnea, too</a>.</li><li><a target="_blank" href="https://www.businessinsider.com/tesla-shareholder-vote-delaware-texas-move-2024-4">Tesla gives Delaware the cold shoulder and pitches a move to Texas</a>.</li><li><a target="_blank" href="https://www.businessinsider.com/peter-thiel-ai-worse-for-math-professionals-than-writers-2024-4">Peter Thiel says AI will be 'worse' for math nerds than for writers</a>.</li><li><a target="_blank" href="https://markets.businessinsider.com/news/stocks/nvidia-stock-price-prediction-ai-ecosystem-potential-fully-realized-2024-4">Nvidia stock could soar 81% if investors recognize its full potential as an AI ecosystem, rather than just a chipmaker, Evercore says</a>.</li><li><a target="_blank" href="https://www.businessinsider.com/insides-neil-chrisss-short-stint-atop-paloma-2024-4">Long-time quant bigwig Neil Chriss is out at Paloma after just 11 months. It was a year of big hires, a restructuring, and new New York digs</a>.</li><li><a target="_blank" href="https://www.businessinsider.com/russia-economy-grows-faster-than-all-advanced-economies-imf-2024-4">Russia will grow faster than the US and all other advanced economies this year, the IMF says</a>.</li></ul><h2>What's happening today</h2><ul><li>Today's earnings: Netflix, Blackstone, Alaska Air, and other <a target="_blank" href="https://markets.businessinsider.com/earnings-calendar">companies are reporting</a>.</li></ul>The Insider Today team: <a target="_blank" href="https://www.businessinsider.com/author/dan-defrancesco">Dan DeFrancesco</a>, deputy editor and anchor, in New York. <a target="_blank" href="https://www.businessinsider.com/author/jordan-parker-erb">Jordan Parker Erb</a>, editor, in New York. <a target="_blank" href="https://www.businessinsider.com/author/hallam-bullock">Hallam Bullock</a>, senior editor, in London. <a target="_blank" href="https://www.businessinsider.com/author/george-glover">George Glover</a>, reporter, in London. <a target="_blank" href="https://www.businessinsider.com/author/grace-lett">Grace Lett</a>, associate editor, in Chicago. Laine Napoli, associate audience producer, in New York.

The case for ditching your real-estate agent when buying a home is gaining momentum 

<ul class="summary-list"><li>Rising insurance costs and HOA fees are forcing some Florida condo owners to sell. </li><li>Buyers are wary of the same costs, however, causing home prices to slide in major cities.</li></ul>The Florida condo market is caught in a storm.Owners are trying to unload units in the face of the skyrocketing costs of maintaining an apartment in Florida. At the same time, prospective buyers are driven away by those same fees."It's definitely been a slow-motion train wreck," said Joe Humphfner, who owns a condo in Jupiter, near West Palm Beach.Listings have soared as prices fall in major Florida cities, according to <a target="_blank" href="https://www.redfin.com/news/florida-condo-prices-dropping/">a new report</a> from real-estate listings site Redfin. The number of listings in February jumped nearly 30% in markets like Jacksonville and Miami compared to the same time last year. Meanwhile, prices dropped by as much as 7% in Jacksonville, to $254,000, and 3% in Miami, to $385,000. By contrast, median condo prices nationally rose 8% over the same period, to around $340,000.It's a symptom of the increasing cost of property ownership in the Sunshine State, where the rusk of flooding and worsening weather have scrambled the homeowners' insurance market. Florida homeownership has become increasingly expensive in general as <a target="_blank" href="https://www.businessinsider.com/florida-housing-market-more-valuable-than-ny-tampa-real-estate-2022-10">home prices</a> continue to rise, <a target="_blank" href="https://www.businessinsider.com/millennial-homeowner-mortgage-rates-living-with-parents-florida-2023-8">mortgage rates</a> remain frustratingly high, and <a target="_blank" href="https://www.businessinsider.com/florida-homebuyers-shocked-by-skyrocketing-property-taxes-2022-11">property taxes</a> keep climbing."A lot of us have known that this is on the horizon," Holly Meyer Lucas, a real-estate agent with Compass in Jupiter, told Business Insider. "It's a long road ahead for us to get insurance even remotely affordable for people."<h2>A deepening insurance crisis for Florida homeowners</h2>The rising cost of insurance has been a long-simmering problem in Florida.The climate crisis and corresponding increase in extreme weather events like hurricanes have prompted major companies, including Farmers Insurance and Bankers Insurance, to cut back coverage offered in the state or pull out entirely.For those who can still get insurance, it's more expensive than ever. Homeowners insurance in Florida costs three times the national average, according to Redfin, and is escalating at a rapid pace. In Cape Coral, on Florida's west coast, <a target="_blank" href="https://www.wsj.com/real-estate/rising-insurance-costs-start-to-hit-home-sales-d8787f0f">flood insurance more than doubled</a> in a year, from nearly $1,800 to $4,800, according to federal data cited by the Wall Street Journal.Homeowners' association fees are rising as older buildings make needed upgrades. The Surfside tragedy of 2021, when a 12-story condo building in Miami collapsed and claimed 98 lives, has caused many Florida buildings to initiate major renovation and safety projects. Fees called assessments are being levied on condo owners to pay for these updates to infrastructure, which can include redoing concrete, revising balcony safety, and other measures.These assessments can add thousands to the annual cost of ownership."People don't just have $10,000 or $30,000 lying around," Meyer Lucas told Business Insider.<h2>Condo buyers and sellers alike are losing interest</h2>Anthony Forina, 43, has been investing in South Florida for over 20 years. Recently, he walked away from buying a $300,000 condo in North Palm Beach that would have come with a $4,500 annual insurance bill. Just a year ago, he estimated, that insurance bill would have been around $2,900, and worries it will only climb higher in the coming years.Forina compared the rent he could charge per month with how much it would cost to own the apartment and determined it would no longer be a sound investment."We've hit a point where the numbers just don't make sense," he told Business Insider.On his own single-family home in Palm Beach Gardens, Forina added, his annual insurance premium, which was $2,600 in 2017, jumped to $8,200 in 2024.Humphfner, the other Jupiter condo owner, bought his pad for $140,000 in 2020. Rising costs have made him consider selling already, he said.HOA fees on his one-bedroom unit have jumped from $200 a month to $500 a month. Much of the increase, Humphfner said, has come from the increased cost of the building's annual insurance payments, which have ballooned from $30,000 per year in 2020 to $100,000 this year.Humphfner, 25, predicted that many owners like him will be forced to sell their units because of increases like these. Many of South Florida's older buildings, he added, will be scooped up by investors and turned into new ultra-expensive luxury buildings as condo owners sell their properties at discounted rates to escape the rising costs."Unless there's a miracle in the insurance market," Humphfner said, "I don't see it being sustainable."

Florida condo owners are stuck in a 'train wreck' as prices drop and mounting insurance rates scare away buyers 

A glut of mediocre Realtors is screwing over homebuyersBret Weinstein, a longtime real-estate broker in Denver, wants to love his industry. At its best, the business helps people find the homes of their dreams or secure financial freedom. But lately, he's been having trouble squaring that passion with a growing problem: a glut of underqualified real-estate agents. "It really does need an overhaul," Weinstein told me. "The general public deserves so much better than what the majority of real-estate agents provide."The issue, Weinstein said, is that it's way too easy to become an agent. In most states, getting a license to help people buy or sell a home requires only a few hundred dollars, several weeks of coursework, and a passing grade on a multiple-choice test. The low barrier to entry and fat commission checks lure many to the industry, especially when home prices rise. In the decade-plus since the housing market started to rebound from its financial-crisis lows, the ranks of agents have swelled with part-timers and career switchers looking to capitalize on the boom. At the end of June, there were roughly 1.6 million registered Realtors in the US — or about <a href="https://www.nar.realtor/membership/monthly-report" target="_blank" rel="noopener">2 ½ Realtors</a> for every available home <a href="https://www.realtor.com/research/june-2023-data/" target="_blank" rel="noopener">on the market</a>.This surplus of agents is bad for both the industry and regular people in the housing market, a <a href="https://consumerfed.org/reports/a-surfeit-of-real-estate-agents-industry-and-consumer-impacts/" target="_blank" rel="noopener">report</a> from the Consumer Federation of America said last month. The low barrier to entry puts buyers and sellers at risk of ending up with dubious advice on one of the biggest transactions of their lives, while the capable agents are forced to spend inordinate amounts of time and money trying to stand out from the pack, the report said. They also waste hours dealing with incompetent colleagues as they try to get a sale across the finish line. When too many agents <a href="https://www.businessinsider.com/housing-market-ice-age-higher-home-prices-fewer-sales-inventory-2023-5">are fighting over too few deals</a>, they're incentivized to keep commission rates high so <a href="https://www.businessinsider.com/real-estate-agents-realtors-reckoning-housing-market-home-sales-slow-2023-4">they can continue to eke out a living</a> — to the detriment of consumers.Not everyone in the business agrees with this assessment. The National Association of Realtors, the industry's largest trade association and the entity responsible for setting the professional standards for many agents, has resisted calls to strengthen the requirements for licensure. It says that easy entry is a feature to be celebrated, not a bug — a prime example of free-market competition at work.Both the NAR and many brokerages have incentives to keep the number of agents high, since they <a href="https://www.businessinsider.com/real-estate-agents-lawsuits-buy-sell-homes-forever-housing-market-2023-6">rely on the dues from agents</a> to keep their businesses going. The NAR has seen its head count grow by nearly 200,000 since the start of the pandemic. But the past few years have also exposed the drawbacks of the setup: Customers grumble over high commissions for subpar service, while an increase in the number of fly-by-night agents has made it harder for those who are dedicated to the profession. Eradicating these issues isn't feasible, but there are incremental steps that could improve things. States could raise the educational requirements for licensing, tighten the standards for passing the test, and require hands-on training, rather than leaving that aspect up to individual brokerages. Fewer agents may join the industry as a result, but ensuring that every person who buys or sells a home gets qualified, serious help to navigate the complex process could be worth it.<h2>A threat to the industry</h2>The vast majority of real-estate agents are independent contractors who rely on commissions. The flexibility of the job, promise of huge payouts, and relatively few requirements for getting started proved to be big draws earlier in the pandemic. It's never been all that difficult to become a real-estate agent. In most states, the required education can be completed in a matter of weeks, and self-paced online courses can cost less than $100. Real-estate appraisers, Weinstein pointed out, are required to complete "substantially more training than a real-estate agent" to value a home, even though they both play key roles in the sales process. In Texas, for instance, appraisers <a href="https://www.talcb.texas.gov/potential-license-holder/licensed-appraiser" target="_blank" rel="noopener">need 150 hours of education</a> and then 1,000 hours of supervised experience before taking a test and earning their license. To become a real-estate agent, you need 180 classroom hours but no other experience. Other states have similar disparities — Massachusetts and Michigan require just 40 hours of education, while barbers in those states must complete 1,000 hours or more. In Pennsylvania, nail technicians must finish 200 hours of education, compared with the 75 hours required of agents. "We're the ones who are negotiating the buy, sell, all of these pieces," Weinstein said. "It's just terrible to have such a low bar."After completing this training, many, but not all, agents choose to join the National Association of Realtors, which allows them to use the designation of "Realtor" and requires them to abide by a code of ethics. To work as an agent, they're also required to affiliate with a brokerage, which is largely responsible for training and mentoring the agent from that point forward. Some do this job well, but others focus on "quantity over quality," Weinstein, who founded the brokerage Guide Real Estate in 2018, told me. A new agent might bring in a few friends and family as clients, providing the brokerage with cuts of their commission checks. But if the agent then flounders, there's little harm for brokerages, since they don't pay the agent a salary and can look ahead to the next crop of entrants."There should be an internship period," Weinstein, told me. "But because it's commissions only, we just drop people in."It may be easy to get started, but making it in the business is another story. Last year, Realtors with less than two years of experience earned a median gross income of just $9,600, according to the NAR. Those with 16 years or more of experience collected a much-larger median gross income of $80,700, but fewer agents make it that far — roughly one-third of Realtors last year said they'd been active for five years or less."The real estate industry shows the entrepreneurial spirit of Americans who start their own business in a fiercely competitive environment," Lawrence Yun, the chief economist and a senior vice president of research for the NAR, said in an emailed statement. "Similar to restaurants and retail, not everyone succeeds."The costs to stay in the business can quickly add up. Membership to the local and national Realtor associations, as well as access to the database where homes are listed for sale, can cost more than $1,000 a year. Most agents are also affiliated with a brokerage that gets a slice of their commissions and may charge additional fees. Then there are the costs for client leads, advertising, gas, and so on. And because there aren't nearly enough deals each year to sustain all these agents, many quickly find that they can't support themselves on real estate alone. The constant churn and minimal standards are problems for everyone involved, Stephen Brobeck, a senior fellow at the Consumer Federation of America and the author of the CFA's recent report, told me. The excess of agents becomes even more damaging when home sales fall, as they did over the past year when mortgage rates shot up."It's essentially a zero-sum game," Brobeck told me. "The commission income is basically fixed. And to the extent the number of agents that are active in the marketplace rise and fall, average income for each agent rises or falls."The battle between entrepreneurial spirit and consistent quality is a long-running topic of heated discussion within the industry — a 2015 <a href="https://www.inman.com/2015/08/13/special-report-why-and-how-real-estate-needs-to-clean-house/" target="_blank" rel="noopener">survey</a> by the real-estate news outlet Inman found that real-estate pros considered "low-quality agents" to be the industry's biggest challenge. That same year, an NAR-commissioned <a href="https://s3.amazonaws.com/static.organiclead.com/Site-f57ce37d-8432-40f4-95b0-76e369b223b8/resources/Roya+Design+-+Danger-Report-small.pdf" target="_blank" rel="noopener">report</a> on the dangers facing the industry identified "masses of marginal agents" as one of the key threats to other agents and the profession at large. "The real estate industry is saddled with a large number of part-time, untrained, unethical, and/or incompetent agents," the report said. "This knowledge gap threatens the credibility of the industry."The report added that the difference "between great real estate service and poor real estate service has simply become too large, due to the unacceptably low entry requirements to become a real estate agent."<h2>Consumers get the short end</h2>Normally, you'd expect more competition among agents to be a good thing for consumers, since agents would be incentivized to drop their prices and undercut their opposition to score more clients. But in real estate, that's <a href="https://www.businessinsider.com/realtors-real-estate-agent-commission-home-housing-sales-ripoff-cost-2022-9">not really how it works</a>. Agents tend to collect between 5% and 6% of the sale price of a home, split between the buyer's and the seller's agents, regardless of their level of experience, the quality of the service, or the amount of time they spend on the deal. While the NAR says commissions are always negotiable, consumers generally don't see the benefits of having more options, at least when it comes to their bottom lines. Buyers and sellers could, of course, forgo an agent and try to complete the transaction themselves. But despite the ease with which home shoppers can now browse homes online, buyers and sellers still see themselves as dependent on real-estate agents. There's a "huge asymmetry in knowledge between the industry and consumers," Brobeck told me. The process of buying or selling a home is complicated — between mortgage applications, insurance, inspections, and a heap of paperwork along the way, few are equipped to go it alone.The risk of ending up with an incompetent agent can't be overlooked, Brobeck told me, even though it's "highly likely" that at least one agent in a deal is capable of completing the sale. The CFA report cited several surveys that indicated most buyers and sellers were at least somewhat satisfied with their experience with agents, though Brobeck added the caveat that consumers might not have the tools to accurately gauge the performance of their chosen professionals. <h2>How the system could change</h2>There are trade-offs to consider here. Jessica Reinhardt, a second-generation Realtor and the president of the Denver Metro Association of Realtors, told me she worried that raising the barrier to entry could turn away those who're already underrepresented in the industry. Last year, the typical Realtor was a 60-year-old white woman who attended college and was a homeowner, <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-nar-member-profile#demographics" target="_blank" rel="noopener">according to the NAR</a>."I do think it's a double-edged sword," Reinhardt told me. "I think you risk losing access for the underserved communities. They want somebody in their communities who they can relate to, to help them buy a house. And if those people don't have the ability to become a real-estate agent or a Realtor, then they lose their access to representation."Reinhardt also bristled at the notion that those with little experience were necessarily unqualified to do the job or didn't deserve the same commissions as their more-experienced counterparts. "I think that you could come into this industry, be brand-new in it, and be killing it," Reinhardt said. "You understand it, you took the time to educate yourself, and you deserve just as much as somebody who's been doing it for 10 years."Competition, Reinhardt said, is necessary for the business. And those who aren't equipped to make it don't stick around forever — they simply can't afford to keep paying the costs to stay in the business. "You get in, you go through the classes, you think you're ready, and it either chews you up and spits you out, or it turns you into a great Realtor. I don't necessarily think it needs to be stopped, and I don't necessarily think it will change," Reinhard said. "I just think it's part of the industry."There are ways the system could change, though. The state agencies that control licensing for agents could increase the education standards or require that agents complete a certain amount of supervised experience in the real world before fully earning their license. The NAR, with its powerful lobby, could push for such changes. The organization could also implement more continuing education for members to retain their "Realtor" designation — currently, it defers to state requirements, which vary considerably. The multibillion-dollar lawsuits against the NAR and major brokerages over agent commissions could also <a href="https://www.businessinsider.com/real-estate-agents-lawsuits-buy-sell-homes-forever-housing-market-2023-6">drastically reshape the industry</a>. If the plaintiffs, who represent a wide swath of home sellers, prevailed, commission rates could fall significantly. That, in turn, could prompt an exodus of agents. The existential threat of these lawsuits has prompted a lot of hand-wringing among agents and executives who worry about preserving the commission rates. But Weinstein told me those concerns missed the larger point. "There wouldn't be a lawsuit if every one of those people felt like they were being taken care of, valued, working with a true professional," Weinstein said, "as opposed to feeling like they're forced to pay them out whatever the result may be."<a href="https://www.businessinsider.com/author/james-rodriguez" rel="">James Rodriguez</a> is a senior reporter on Insider's Discourse team.

Crappy real-estate agents are costing homebuyers millions

<ul class="summary-list"><li>Ocala has the lowest risk of coastal flooding in Florida, analytics platform Climate Alpha found.</li><li>One real-estate agent has seen an influx of people from South Florida seeking "peace and security."</li></ul>Some Floridians are leaving their coastal homes due to the risk of extreme weather events and increasing insurance premiums —but they aren't going too far. They're descending on Ocala, a 64,000-person inland town located centrally in the state and an hour drive north of Orlando, the <a href="https://www.wsj.com/real-estate/ocala-florida-hurricanes-2a991853?mod=real-estate_lead_story" target="_blank" rel="noopener">Wall Street Journal reports</a>. Dubbed the "Horse Capital of the World" for its many equestrian facilities, the small town is now a hotspot for those who want to stay in the Sunshine State but are seeking higher elevation. "By the time a hurricane reaches us, they lose steam," Ocala real-estate agent Courtney Moody told Insider. "It's mostly a rainstorm."Moody said that the town's reputation for its elevation — nearly 100 feet above sea level — has made Ocala an attractive destination for homebuyers. "They like the sense of peace and security," she said. For some, it's too late. Moody said she's shown houses to hurricane-stricken South Floridians, who just the week before "had water up to their window sills inside of their home." For others, the move is pre-emptive. Recently, Moody worked with a couple from Miami that was looking to put down roots for a family and were attracted to the "stability" of Ocala. The couple bought a six-bedroom home for $950,000 with plans for a growing family. They were happy to move far away from not only the risk of extreme weather events, but also the rising insurance premiums tied to coastal communities."Florida's going through an insurance crisis," she told Insider.<h2>Relief 100 feet above sea level</h2>Ocala came out on top in a study by climate-software company Climate Alpha for the Journal. It evaluated Florida towns based on federal government weather forecasting models, the quality of local infrastructure, the number of hospital beds nearby, and other factors. Clinching the spot as Florida's city with the "lowest risk of coastal flooding," according to Climate Alpha, Ocala also passed with flying colors as a town with a low risk of flooding compared to other inland towns.<div type="image" title="Cattle rancher in Ocala, Florida" height="3511" width="4682" msid="104260234" hostid="261" sizebytes="1451154"></div>Of course, Ocala is not completely immune to hurricanes, as the Journal noted 2017's Hurricane Irma caused some power outages and flooding. However, the Ocala Police Department told the outlet that there was no significant damage during Hurricane Idalia this past August.<h2>Floridians navigate rising insurance premiums </h2>Jo Anne and Ed Lewis used to get "hunched up" shoulders when hurricane season arrived in their town of Bonita Springs on the west coast of Florida, the Journal reported.When seeking cover from a hurricane this past August, they happened upon idyllic Ocala and decided to make a new inland home. Significant for the couple, their combined deductible premium — one for home damage and another for hurricane damage — now totals $6,000 compared to the $20,000 for their home in Bonita Springs. <div type="image" title="Aerial view of downtown Ocala, Florida" height="2160" width="2880" msid="104260235" hostid="261" sizebytes="468526"></div>The average insurance premiums for Florida residents has tripled in the past five years, according to Insurance Information Institute data collected by the Journal. Major insurers have cut coverage in the state, as the increasing volatility of extreme weather causes many to re-evaluate their portfolios. <a href="https://www.businessinsider.com/personal-finance/farmers-insurance-florida-stops-home-auto-insurance-2023-7">Farmers Group stopped offering new home insurance policies</a> altogether in Florida earlier this year.As a result, Florida residents are struggling. Danny Collins, who lives in Hobe Sound, Florida, just north of West Palm Beach, previously told Insider his <a href="https://www.businessinsider.com/my-mortgage-in-florida-went-up-1000-because-of-potential-flooding-2023-7">mortgage jumped $1,000 under new insurance premiums</a>. Bob Stephens, who lives in the Florida Keys, previously shared with Insider that he <a href="https://www.businessinsider.com/how-insurers-will-shape-where-people-live-climate-change-2023-7">has not been able to find insurance</a> that fully covers his $3 million home in Marathon. Ocala is located in one of Florida's cheapest counties for insurance, Marion, with average premiums hovering around $1,800 compared to $5,600 in Miami-Dade County and $7,500 in counties closer to the Florida Keys, according to the Journal. For Florida residents eyeing Ocala, that's a huge relief, said Moody. "You're not getting a coast," she said, "but you are getting rid of high insurance costs, high housing costs, and your home potentially washing away."

Floridians are relocating to the center of the state to try to avoid hurricanes — and high insurance premiums

<ul class="summary-list"><li>I hand't considered life insurance until 2022. </li><li>After doing research, I decided to get my 5-month-old child life insurance. </li></ul><a target="_blank" href="https://www.insider.com/why-get-life-insurance-before-married-kids">Life insurance</a> had rarely ever crossed my mind until 2022, when I went through a traumatic childbirth and received the devastating news of my 29-year-old friend's <a target="_blank" href="https://www.insider.com/diagnosed-with-brain-cancer-at-25-how-i-stay-resilient-2023-4">cancer diagnosis</a>, all while watching the market downturn wipe away half of our hard-earned <a target="_blank" href="https://www.insider.com/many-americans-dont-have-high-yield-savings-account">savings</a>.These events made me start looking for a financial strategy to safeguard our family's future, and I stumbled upon <a target="_blank" href="https://www.insider.com/why-you-should-get-life-insurance-if-you-have-student-loans">life insurance</a> with living benefits. Not only does it pay out upon passing, but it also offers coverage for critical illnesses, including cancer, providing financial support when needed most. Moreover, it can shield our savings from market volatility and <a target="_blank" href="https://www.businessinsider.com/personal-finance/life-insurance-retirement-plans-expert-advice-2023-9">pave the way for a secure retirement</a>, offering a steady lifetime income stream.This seemed like the ideal solution to my concerns, but I discovered some conflicting opinions from financial advisors and insurance agents. As a CPA with a passion for numbers, I decided to obtain a life insurance license to be able to calculate and assess its financial aspects. This ultimately led me to secure life insurance for my daughter when she was 5 months old.<h2>Maximizing the power of compound interest with minimal fees</h2>Life insurance costs are based on health and age. By securing a policy for our child at just 5 months old, we locked in the most favorable rate for her lifelong protection. Additionally, this lower cost allows us to contribute more to the life insurance policy's cash value and take advantage of compound interest for long-term savings.For instance, if we start saving just $100 a month for our child now, she can accumulate $1 million by the time she retires. Waiting 25 years to begin the same savings plan would result in a significantly smaller sum — around $150,000.<h2>Potential tax-free college funding without influencing financial aid eligibility</h2>When structured correctly, a permanent life insurance policy can provide tax-free withdrawals, making it a valuable choice for funding college expenses without affecting eligibility for financial aid.If a family has substantial funds in a 529 plan or other savings accounts, it can potentially reduce the amount of financial aid the student qualifies for. However, a life insurance policy doesn't count as an asset in this calculation, so it doesn't influence the level of financial aid available to the student.<h2>Flexible use throughout a lifetime</h2>While 529 plans confine their use to qualified educational expenses, imposing penalties and taxes if funds are redirected for other purposes, life insurance distinguishes itself with flexibility.Through life insurance, our child gains access to potential tax-free funds for expenses beyond college. This money can serve various purposes, from financing a wedding to securing a down payment on a house and even providing a reliable source of income for retirement.<h2>A financial safety net in market downturns</h2>Withdrawing money from the stock market during downturns can be challenging due to the declining value of investments. In contrast, life insurance offers stability with a guaranteed floor.For instance, with the 0% floor, the cash value in our policy won't decrease even if the stock market is underperforming. This is because the interest rate is guaranteed not to fall below 0%. Consequently, this means that our child can access the funds from her policy when she needs them, even in challenging economic times.<h2>Lifetime protection with living benefits</h2>Thanks to living benefits, the policyholder can tap into death benefits while still alive for qualified illnesses such as cancer, stroke, heart attack, and many more. This ensures we have the financial resources to cover advanced medical treatments and maintain, or even enhance, the quality of life to aid in the recovery process.<h2>A Legacy for the Next Generation</h2>Last but not least, life insurance can become a substantial asset to pass on to future generations, establishing a lasting legacy. By securing a policy now, we are not only protecting our child's future but also giving the gift of financial security to the next generation.<a target="_blank" href="https://hoanganhle.com/">Hoang Anh Le</a>, the founder of <a target="_blank" href="https://luxuryunderbudget.com/">Luxury Under Budget</a>, is a CPA turned financial educator, life insurance advisor, and entrepreneur.

You Searched For "Insurance agents" and got 11 results

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I got life insurance for my 5-month-old baby. Here's why.

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