Rising Property Insurance Premiums: The Uneven Risks to Household and Systemic Financial Stability

Recent research reveals that homeowners with lower credit scores or who live in  neighborhoods of color are often charged more for property insurance coverage even when the disaster risks they face are comparable to those paying less for insurance. As climate risk grows, borrowers perceived by insurance companies as having riskier credit characteristics could be disproportionally burdened by higher insurance costs that undermine their financial stability.

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