Black and Hispanic homeowners pay more for insurance as extreme weather worsens
A new report finds Black and Hispanic homeowners pay hundreds of dollars more a year than white homeowners for identical insurance coverage, with Florida showing the widest gap.
A new report from the Consumer Federation of America finds homeowners in majority-Hispanic ZIP codes pay about 30% more for insurance than those in white communities — an extra $950 a year — while homeowners in majority-Black ZIP codes pay 16% more, or about $500 a year, for identical coverage. Over a 30-year mortgage, that gap adds up to at least $28,500 for Hispanic homeowners and $15,000 for Black homeowners.
Florida shows the widest disparity: Hispanic homeowners there pay 58% more, or $5,014 a year, for the same coverage as white homeowners. New York, Washington, Massachusetts and Kansas also show significant gaps.
The report ties part of the disparity to redlining, the discriminatory lending practice banned in 1968 that still shapes which neighborhoods get infrastructure investment. The Insurance Information Institute, an industry group, said premiums reflect risk, not race, noting that using race to set rates is illegal. But researchers said newer underwriting tools, including artificial intelligence and credit-score-based pricing, may let bias back in indirectly. The report calls for stronger state enforcement of fair housing laws and more transparency from insurers.
Based on reporting by Amy Green for Grist. Read the original: https://grist.org/economics/as-extreme-weather-worsens-black-and-hispanic-homeowners-are-paying-more-for-insurance/
This article was produced with the assistance of AI tools and reviewed by an editor before publication.
