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ClimateQuiet 12d · day 14

Consumer Federation Report: Black and Hispanic Homeowners Pay 16-30% Higher Insurance Premiums

A July study finds systemic racial disparities in home insurance costs that compound over decades of homeownership.

newest coverage 11d agosummary written 13d ago9 pieces187 likes & upvotes9 comments NewswiresMastodonBluesky

What to know

  • Hispanic homeowners pay 30% higher premiums ($950/year), Black homeowners 16% higher ($500/year) compared to white homeowners for identical policies, totaling $28,500 and $15,000 extra over a 30-year mortgage.
  • The disparities persist even when controlling for local risk factors, pointing to systemic inequities rooted in redlining's legacy of segregation and disinvestment.
  • Insurance industry argues premiums reflect objective risk and catastrophe exposure, not race, with regulators required to prevent discrimination in rate-setting.

“A lot of this bias can kind of creep in if they're not paying attention to potential unequal impacts.”

Sharon Cornelissen, Director of housing, Consumer Federation of America · Mother Jones ↗ · Sep 9

Consumer Federation of America Research organizationSharon Cornelissen Director of housing, Consumer Federation of America; report co-authorMark Friedlander Spokesman, Insurance Information Institute

Consumer Federation Report: Black and Hispanic Homeowners Pay 16-30% Higher Insurance Premiums
motherjones.com

How it unfolded 1 development · click the chart to see its coverage articlesposts

Peak 4 pieces in 4h at Sep 10, 6 AM; 9 pieces over 14 days (2 articles · 7 posts) Sep 10, 6 AM — 4 pieces · 1 article · 3 posts — Mastodon 3, Newswires 1Sep 10, 10 AM — quietSep 10, 2 PM — quietSep 10, 6 PM — quietSep 10, 10 PM — quietSep 11, 2 AM — quietSep 11, 6 AM — quietSep 11, 10 AM — quietSep 11, 2 PM — 2 pieces · 2 posts — Bluesky 1, Mastodon 1Sep 11, 6 PM — quietSep 11, 10 PM — quietSep 12, 2 AM — quietSep 12, 6 AM — 3 pieces · 1 article · 2 posts — Mastodon 2, Newswires 1Sep 12, 10 AM — quietSep 12, 2 PM — quietSep 12, 6 PM — quietSep 12, 10 PM — quietSep 13, 2 AM — quietSep 13, 6 AM — quietSep 13, 10 AM — quietSep 13, 2 PM — quietSep 13, 6 PM — quietSep 13, 10 PM — quietSep 14, 2 AM — quietSep 14, 6 AM — quietSep 14, 10 AM — quietSep 14, 2 PM — quietSep 14, 6 PM — quietSep 14, 10 PM — quietSep 15, 2 AM — quietSep 15, 6 AM — quietSep 15, 10 AM — quietSep 15, 2 PM — quietSep 15, 6 PM — quietSep 15, 10 PM — quietSep 16, 2 AM — quietSep 16, 6 AM — quietSep 16, 10 AM — quietSep 16, 2 PM — quietSep 16, 6 PM — quietSep 16, 10 PM — quietSep 17, 2 AM — quietSep 17, 6 AM — quietSep 17, 10 AM — quietSep 17, 2 PM — quietSep 17, 6 PM — quietSep 17, 10 PM — quietSep 18, 2 AM — quietSep 18, 6 AM — quietSep 18, 10 AM — quietSep 18, 2 PM — quietSep 18, 6 PM — quietSep 18, 10 PM — quietSep 19, 2 AM — quietSep 19, 6 AM — quietSep 19, 10 AM — quietSep 19, 2 PM — quietSep 19, 6 PM — quietSep 19, 10 PM — quietSep 20, 2 AM — quietSep 20, 6 AM — quietSep 20, 10 AM — quietSep 20, 2 PM — quietSep 20, 6 PM — quietSep 20, 10 PM — quietSep 21, 2 AM — quietSep 21, 6 AM — quietSep 21, 10 AM — quietSep 21, 2 PM — quietSep 21, 6 PM — quietSep 21, 10 PM — quietSep 22, 2 AM — quietSep 22, 6 AM — quietSep 22, 10 AM — quietSep 22, 2 PM — quietSep 22, 6 PM — quietSep 22, 10 PM — quietYesterday, 2 AM — quietYesterday, 6 AM — quietYesterday, 10 AM — quietYesterday, 2 PM — quietYesterday, 6 PM — quietYesterday, 10 PM — quietToday, 2 AM — quiet 1
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  1. 1

    Insurance industry spokesman disputes racial bias, cites legal prohibitions and risk factors

    Mark Friedlander of the Insurance Information Institute stated that premiums are based on risk and not race or ethnicity, that the rating system is actuarially grounded and heavily regulated, and that using race or proxies for race to set rates is illegal. He attributed disparities to objectively higher catastrophe exposure or rebuild costs in some communities.

    “Using race, or any proxy for race, to set insurance rates is illegal in every US jurisdiction, and state insurance regulators review and approve the rating factors insurers use precisely to guard against that.”
    — Mark Friedlander
    • motherjones.com

      Homeowners in predominantly Hispanic zip codes in Florida pay on average 58% more for the same coverage as those in white communities.

      motherjones.comBluesky12d ago186▲view on Bluesky ↗
    2 posts in this stretch →
  2. background

    Consumer Federation releases report on racial disparities in home insurance costs — The Consumer Federation of America, representing nearly 250 consumer groups, published findings showing homeowners in predominantly Hispanic zip codes pay an average of 30 percent higher premiums ($950 annually) and those in predominantly Black zip codes pay 16 percent higher premiums ($500 annually) compared to homeowners in white communities, based on analysis of identical policies across communities.

Also covered reported alongside — the timeline has no entry for these yet

  1. 2 outlets Soaring Insurance Prices Are Hitting Black and Hispanic Homeowners Hardest

    first by Mother Jones, 13d ago · also Grist

    1 more headline

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