Goodcover Monthly News Roundup | June 2023

Welcome to the Goodcover Monthly Roundup for June 2023.

Our monthly news roundup is here to help you stay informed on the latest in insurance and housing that can impact you. You can view our previous monthly recaps here.

Let's jump into news that caught our attention this month:

What’s More Affordable: Buying or Renting?

A recent study by Redfin and published by CBS MoneyWatch reveals that in only four major U.S. cities – Cleveland, Detroit, Houston, and Philadelphia – buying a home is cheaper than renting. The culprit? Soaring mortgage rates, which have more than doubled since 2021. In most cities today, renting is the most cost-effective choice, particularly in places like San Jose, California, where the average homebuying cost is 165% more than renting.

Is Rent Control Having a Resurgence?

Rent control, a once-popular policy that faded away in the 90s, might be making a comeback. Cities like Boston and states like Colorado, Minnesota, Oregon, and California are seeing a resurgence in efforts to stabilize rent prices. However, real estate boards and real estate developers oppose rent control. Some are even funding candidates that run on the opposing platform. The stakes are high, so staying informed on how the efforts are going in your city or state is a good idea.

Resources for Renters’ Rights

This month, NPR shared a great article with four tips for understanding renters’ rights that are crucial reading. Remember, as a renter, you’re not alone if something goes wrong. Knowing your rights is essential for a fair and secure housing situation. To learn more about the rights you have when finding a place or getting evicted, check out our blog.

The Power of Eviction Filing Fees

Despite high rents for the area, Alabama has a surprisingly low eviction rate. That’s because, as Eviction Lab reports, landlords face an average eviction filing fee of $276, significantly higher than in neighboring states. Research shows that higher filing fees lead to lower eviction rates, particularly benefitting renters in majority-Black neighborhoods. Policymakers in all states have the opportunity to improve housing stability by increasing filing fees, and we believe this is an issue renters should care about.

The Effects of Climate Change on Insurance

Bloomberg reports that the battle between climate change and homeowners insurance intensifies as extreme weather becomes more prevalent. Major insurance player AIG plans to limit sales in about 200 zip codes across the country, following similar decisions by State Farm and Allstate to stop writing policies in wildfire-prone California, and a decision by Nationwide to pull back as well. Rising water levels, stronger storms, wildfires, and other extreme weather events are contributing to increased risk on the insurance side. As renters, it’s important for you to consider the location of where you’re renting, as limited insurance options for your landlord may be available, which may affect you. And don’t forget renters insurance – it’s the best bet to help protect yourself from unforeseen catastrophes.

On a global scale, Reuters reports that several insurance companies, including Tokio Marine, have left the Net-Zero Insurance Alliance (NZIA), backed by the United Nations, due to U.S. political pressure. Republican politicians have criticized the collaborative efforts to reduce carbon emissions, causing concerns about antitrust violations. With the latest exit, the NZIA’s membership has been cut in half, and the remaining members are trying to reach their sustainability goals independently. With the climate at a crucial turning point, it’s important to support companies and politicians committed to taking action toward sustainability goals.

Final Thoughts: June 2023 Monthly Roundup

That's it for Goodcover's June Roundup. Thanks for reading! If you enjoyed this post, please check out our other resources on the blog.

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See you next month.

-The Goodcover Team

Note: This post is for informational purposes; insurance regulation and coverage specifics vary by location and person. Check your policy for exact coverage information.

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