A Treasury Department report has revealed that insurance costs for homeowners in areas affected by natural disasters are rising due to increased damages from severe events.

Between 2018-2022, 84 disasters caused $609 billion in damages, leading to premiums in high-risk areas averaging 82% more than in low-risk areas.

Insurance premiums have increased 8.7% faster than inflation, with nonrenewal rates and claims also higher in these regions, CNBC has reported.

The report highlights the growing difficulty for homeowners in high-risk areas to find affordable coverage, impacting their long-term financial security.

Written by B.C. Begley