A
t the REALTORS Legislative Meetings in Washington, D.C., rising insurance costs took center stage as a major concern for real estate transactions. Moderated by James Cristbrook, the roundtable highlighted how insurance issues are complicating closings and eroding client confidence. Panelists emphasized that these challenges are widespread, with roof-related claims surging in the Midwest and Northeast, and condo insurance becoming a hurdle in the West and South.

    Rates are increasing, and coverage is harder to find in high-risk areas, Cristbrook noted. State regulators like Virginia Insurance Commissioner Scott A. White are working to balance affordability and availability while maintaining insurer solvency. White emphasized the importance of risk-based pricing and consumer education, warning that insurance is not intended for routine maintenance.

    Mike Richmond-Crum from the American Property Casualty Insurance Association highlighted the pressures insurers face from inflation, extreme weather, and legal system abuse. He cautioned against capping rates, which can make insurance harder to obtain in high-risk areas. Roy E. Wright of the Insurance Institute for Business & Home Safety underscored the value of mitigation, pointing to successful state programs that offer discounts for homes hardened against disasters.

    The second panel focused on real estate industry-led solutions, with moderator Ted Oatts emphasizing the importance of mitigation. Sanjay Wagle from the California Association of REALTORS explained how some insurers are declining to write new policies in high wildfire-prone areas due to rising costs and elevated risk. Trey Goldman from Florida REALTORS highlighted their support for the My Safe Florida Homes program, which educates homeowners on how to strengthen their homes against hurricanes.

    Austin Perez from NAR emphasized that while insurance is regulated at the state level, the federal government has a critical role to play in expanding grants and tax incentives to reduce costs and make insurance more available. The session provided practical advice and resources for NAR members to connect clients with trusted experts who can help them make informed decisions about homeownership.