While home affordability and supply remain top concerns in the real estate market, the issue of rising insurance costs took center stage at the REALTORS® Legislative Meetings in Washington, D.C., this week.
Moderated by NAR REALTOR® Party Community Engagement Liaison James Cristbrook, the roundtable opened with a clear message: Insurance issues are increasingly complicating real estate transactions—often at the last minute—and are affecting both closings and client confidence.
Panelists emphasized that these challenges are not isolated. Roof-related claims are surging in the Midwest and Northeast, while condo insurance is becoming a major hurdle in the West and South parts of the country. “Rates are rising, and coverage is becoming harder to find in high-risk areas,” said Cristbrook, who is an agent with @properties Christie’s International Real Estate in Birmingham, Mich. “We’re here to explore what state and federal governments can do to support [members] and their clients.”
The first panel featured Scott A. White, Virginia insurance commissioner and vice president of the National Association of Insurance Commissioners; Mike Richmond-Crum, senior director, personal lines and counsel, of the American Property Casualty Insurance Association; and Roy E. Wright, president and CEO of the Insurance Institute for Business & Home Safety.
Commissioner White explained how state regulators are working to balance affordability and availability while maintaining insurer solvency. He emphasized the importance of risk-based pricing and consumer education, noting that “insurance is not intended for routine maintenance” and that understanding coverage limitations is key.
Richmond-Crum highlighted the pressures insurers face from inflation, extreme weather and legal system abuse. He warned that while capping rates may seem like a solution, it can make insurance harder to obtain in high-risk areas. “Federal grants and tax incentives that reduce disaster risk can help lower both home and flood insurance rates,” he said.
Wright underscored the value of mitigation, pointing to successful state programs in Alabama and Florida that offer insurance discounts for homes hardened against disasters. “Stronger homes mean fewer claims, and fewer claims mean lower premiums, but this only works when governments, insurers and communities collaborate.”
The second panel, moderated by Ted Oatts, chair of the NAR Insurance Committee, shifted focus to real estate industry-led solutions. “Mitigation is the key—helping homeowners reduce risk will lower insurance costs and improve availability,” Oatts said.
Sanjay Wagle, senior vice president of government affairs at the California Association of REALTORS®, explained that some insurers are declining to write new policies in California due to the elevated risk and rising cost of rebuilding homes in high wildfire-prone areas. He highlighted California Insurance Commissioner Ricardo Lara’s sustainable insurance strategy—supported by C.A.R.—which would allow insurers to use forward-looking catastrophe models and reinsurance costs in rate filings, in exchange for writing coverage in high wildfire-risk areas.
Trey Goldman, legislative counsel for Florida REALTORS®, emphasized that Florida is one of the most expensive states for home insurance. Florida REALTORS® supports the My Safe Florida Homes program, which educates homeowners on how to strengthen their homes against hurricanes and reduce insurance costs.
Austin Perez, NAR senior policy advisor on insurance, emphasized that while insurance is regulated at the state level, the federal government has a critical role to play. “Expanding federal grants and tax incentives would help consumers reduce their costs and make insurance more available—because it brings down the cost of insuring homes,” Perez said.
While NAR members may not be disaster risk or insurance experts, many left the session with practical advice and resources on how to be a “resource of the source”—connecting clients to trusted experts who can help them make informed decisions as they pursue homeownership.
