More than 6 million homeowners across the United States do not carry homeowners insurance, putting their properties at risk of damages, a new study found.
One in 13 (7.4%) of homeowners across the country are uninsured. This is equivalent to 6.1 million homeowners, the Consumer Federation of America noted in its new study "Expose: A Report on 1.6 Trillion Dollars of Uninsured American Homes" published Monday.
The report also said that, in 2021, $1.6 trillion in property value of uninsured homes was at risk. The total includes $339 billion of uninsured Hispanic-owned homes and $206 billion of uninsured Black-owned homes. This is a conservative estimate, the report noted.
Who Are Most Likely To Have Uninsured Properties?
Homeowners of color are disproportionally at risk due to a lack of homeowners insurance. Specifically, 22% of Native Americans, 14% of Hispanic, and 11% of Black homeowners have no insurance policies on their property.
Apart from race, the study also looked at other factors, such as household income and location. In income, homeowners making under $50,000 annually were found twice as likely to be uninsured compared to the general population. In location, homeowners living in rural areas and those living in Miami and Houston were most likely not to have homeowners insurance.
"Being uninsured can foster deeper economic precarity for millions of homeowners across the country, especially those with lower incomes, and it is an important contributor to racial inequality," the report read.
"Inequalities in who has homeowners insurance will likely widen the long-standing racial wealth gap, as uninsurance disproportionately impacts Hispanic, Black, and Native American homeowners. Over time, insurance access is likely to become a key decider of who can fully reap the benefits of homeownership, including maintaining their home and building wealth," it continued.
The study noted that it only looked at homeowners who lacked basic homeowners insurance. This means properties lacking specialized flood or earthquake insurance were not included in the estimate.
The study also noted that they expect the number of uninsured homes to have risen since 2021, especially as some insurance companies pulled out of states prone to devastating weather-related challenges.
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